Aussie market opened on positive sentiment and then was further supported by the job vacancy data before the Chinese trade data set the rocket under the market. We saw a lot of short covering as the volatility index reached stretched levels and further boosted the market performance today. The positive data from China should flow through global markets and hopefully provide our market with a positive lead. Market fear factor is still high despite today’s bounce. Time to wait for the data and then react!!! Gold is likely to see selling after the Chinese data while Oil may see support in the next few days. Since we wrote about the US market “Death Cross” technical signal early in the week, we have had a number of houses come out with very bearish view on the market. We see risk of correction in the US, but not another crisis. If we do see another credit crunch event (i.e. with commodity companies this time), we expect central banks to deliver more QE and support the transition. Notable moves today were… (VIEW LINK)
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