Overnight update:
Korea tests a nuke.
The dollar will tell you how much real panic there is. Usually, unless it is an attack on the US, there is a flight to safety by buying dollars, so the dollar should rise. Gold is going up along with oil, which in turn is going up on the OPEC news. Equities could be the hardest hit should Asian currencies get hurt. There is no real panic, but US futures are unable to get a bid at lows. Bonds are closed tomorrow so equities will be flying on their own. Stocks are overbought and at resistance already so there is no need for anyone to chase this. Big week for earnings and traders could play it safe by booking profits at this point. Just note that it is very likely the cash strapped North Koreans shorted Asian currencies and markets ahead of this and they will have to cover at some point.
Korea tests a nuke.
The dollar will tell you how much real panic there is. Usually, unless it is an attack on the US, there is a flight to safety by buying dollars, so the dollar should rise. Gold is going up along with oil, which in turn is going up on the OPEC news. Equities could be the hardest hit should Asian currencies get hurt. There is no real panic, but US futures are unable to get a bid at lows. Bonds are closed tomorrow so equities will be flying on their own. Stocks are overbought and at resistance already so there is no need for anyone to chase this. Big week for earnings and traders could play it safe by booking profits at this point. Just note that it is very likely the cash strapped North Koreans shorted Asian currencies and markets ahead of this and they will have to cover at some point.
This entry was posted
on Sunday, October 08, 2006 at 11:41 PM.
