It’s a long day but this BROADCOM (AVGO) news is important. As you know, the SEMIS are the most important group to our work as they continue to lead markets up and down. It used to be the FINANCIALS were first and SEMIS second. No longer. So…we will watch closely. Fundamentally, we have been saying the numbers out of the SEMIS have been suspect but the hope was “the second half!” Well, the second half rebound does not look at hand. Seeing some horrible chart patterns in the group. The group will need to stand up and be defended soon.
As far as the rest of the market, continue to think narrow…but GOLD and GOLD STOCKS opening at or around new yearly highs.
China industrial production came in under expectations and 17 year lows.
The ECB saying they are very worried about bad loans. Really…hey ECB and Draghi, it’s your easy money and negative rates that do just that…promote bad loans.
German 10 year bund…new record low yielding 0.27%. That’s not a typo. Spain is at an all-time low at 0.50%.