Aussie market started positive and remained there as global markets turned optimistic with more stimulus coming from ECB and also potentially from BOJ. Japanese markets bounced 5% today while European markets were all a sea of green overnight. As we mentioned before the US and China risk can be pushed back by Central Banks by turning on the cheap debt tap and it looks like we are going down that path again. As we wrote at the end of December, Jan was setting up as a profit taking month…short term buy signal was triggered today as the stimulus hope starts to support market uncertainties. Tuesday the markets are closed and history shows we will have substantial part of the market away on Monday. The market is likely to move higher on Monday on low volume. Next week really becomes 3 day short week with US Fed update coming on Thursday morning. It may be a short week, but will again be eventful. (VIEW LINK)
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