The rally since Monday is being attributed to end-of-quarter window dressing. And yet the ‘usual suspects’ of correlated markets are up (some very strongly) simultaneously: AUD strong, copper strong … could be coincidental, these markets moving due to their own dynamics (I know the market has been pretty bearish on the AUD, maybe some short covering and delayed long establishment)? Having said this, my (ES) PF charts, and others, are starting to look like maybe the rally is faltering a little. My wariness has cranked up quite a bit, nothing conclusive (is it ever?). But, if there is window dressing to be done, then today (last day of the quarter) is the day. Hmmmm.
On another note, a few weeks ago I wrote about the potential for the initial claims figures to show some improvement as auto plants started to recover in the wake of the component supply problems from Japan (I got this idea from the Califia Beach Pundit blog, post here. And I really want him to be right). This hasn’t happened. I am wondering whether to affix a ‘yet’ to the end of that last sentence.
On a sobering note, from Tim Duy, is this depressing post: The Lost Jobs Opportunity http://economistsview.typepad.com/timduy/2011/06/the-lost-jobs-opportunity.html
No time to summarise it now, pretty depressing stuff, though, from a sensible analyst.