A roundup of what The Globe and Mail's market strategist Scott Barlow is reading today on the Web
The most pressing market news today is the beating precious metals prices are taking,
"Gold prices fell one percent to hit their lowest in near six weeks on Monday, amid a stronger dollar and rise in Asian shares, ahead of a flurry of U.S. data due this week. 'This sharp depreciation, which lacks any fundamental drivers on a relatively quiet trading day has left investors bewildered,' said Lukman Otunuga, research analyst, FXTM"
"Gold falls 1 pct to hit near six-week low" – Nasdaq
"@Sunchartist Gold testing trend line support" – (technical analysis chart) Twitter
Update: the fall in gold might be the result of a "fat finger" trade mistake,
"Gold sank like a stone at 9 a.m. in London after a huge spike in volume in New York futures that traders said was probably the result of a "fat finger," or erroneous order."
"Gold Plunges as 1.8 Million Ounces Traded in a New York Minute" – Bloomberg
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Even the journalists covering crude prices are beginning to expect we've reached the "point of maximum pessimism" and a short-term rally is approaching,
"#Oil journalists (including myself) are writing lots of bearish headlines -- a sign that oil is about to rally? chart via @TheTerminal #OOTT" – (chart) Twitter
"Oil Falls Prey to 'Hungry' Bears as Investors Drop Bets on Rally" – Bloomberg
"OPEC Looks Totally Bewildered by the Oil Market" – Gadfly
"@ronbousso1 BAML #oil demand growth outlook is bearish @BankofAmerica " – (research excerpt) Twitter
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The Bank of International Settlements (BIS) are a dour lot. The "bank of central banks" has released a report suggesting that the next recession will start like the previous one, with a financial crisis,
"'The main cause of the next recession will perhaps resemble more closely that of the latest one – a financial cycle bust,' the BIS report says. 'While an inflation spurt cannot be excluded, it may not be the main factor threatening the expansion, at least in the near term,' the BIS adds. 'Judging from what is priced in financial assets, also financial market participants appear to hold this view.'"
"The next recession will probably start much like the last one" – Business Insider
The Canadian chart here literally made me wince: "@BIS_org What could happen to household debt service burdens if interest rates rise? bis.org/publ/arpdf/ar2… " - (chart) Twitter
Full BIS annual report – BIS.org
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More waves of market pessimism over the weekend, this time from JP Morgan and bank of America Merrill Lynch,
"Federal Reserve rate rises in the US, and receding monetary accommodation from the European Central Bank and Bank of Japan will soon begin removing some of the main factors that have supported the high valuations across financial assets, Mr Kolanovic said. 'Medium term, this is likely to lead to market turmoil, and a rise in volatility and tail risks.' Mr Kolanovic's remarks echo those from fellow Wall Street bank, Bank of America Merrill Lynch, which warned this week that 'peak liquidity and peak profits [mean a] big top in autumn.'"
"It's time to brace for 'market turmoil', warns JPMorgan" – FastFT
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Tweet of the Day: "@M_PaulMcNamara Killer chart from Citi on how QE drives the credit market " – Twitter
Diversion: There is something to outrage everyone on this list,
"Prepping for Canada 150: 50 Legendary Canadian Songs" – Alan Cross, a Journal of Musical Things
Scott Barlow