Don’t worry be happy!

Don’t worry be happy!  Equity markets rallied yesterday with high hopes that a meeting with low level Chinese trade officials scheduled for next week will end the ongoing trade rift between the US and China.  The markets were so elated at the prospect of a breakthrough with China that the EM contagion question that plagued…

Testing the Limits!

Testing the limits!  Adorning the fronts of theaters and playbills are the highly recognized drama masks depicting one frowning and one smiling mask.  This symbol, in fact, goes back to ancient Greece and is still relevant today not only for theater but also on the stage of international politics, trade, and financial markets.  Equity markets,…

Bubble Trouble?

Bubble trouble?  Traders decided to put Turkish contagion behind them yesterday driving equities up throughout the session.  The S&P500 closed just below its session high essentially erasing the losses from Manic Monday (see chart 4).  The Dow Jones Industrial Index similarly ended trading just below its session high shoring up the index after 4 days…

Manic Monday

Manic Monday!!  A song written by Prince and popularized by The Bangles also happens to be the term that best describes yesterday’s equity markets.  Equity markets followed on Friday’s weakness sold off and closed near session lows as they were unable to hold early gains.  Fears of contagion from Turkey’s weak currency served as the…