We’re a little late posting last week’s review. It’s history after today’s rally so not much to write about. Do note the weakness in Mexico, however. Brazil, Korea, and the Shanghai showing relative strength due to expectations of manufacturing shift from Japan. CRB Foodstuffs holding a a key technical level.
Let’s see how high they can take them, which should establish the parameters of a trading range, which will be in effect, in our opinion, until some of these issues haunting the markets are resolved: 1) Japan nuclear and supply chain shocks; 2) Geopolitical and $4-5 gas price; 3) Euro tightening; 4) the end/or renewal of QE2; and 5) earnings impact of all of the above. (click here if charts are not observable)