Market Outlook: Current Scenario Is Similar To The 'Flash Crash'

As the economic calendar slowly picks up following the NFP lull, we are looking at a busy week both globally and in the US, where an army of Fed speakers culminates with a Yellen speech on Friday at 1pm in Rhode Island. As DB notes, the start to the week is rather quiet with just May NAHB housing market index in the US.

This post Coming Soon: The Great Bitcoin Crash? appeared first on Daily Reckoning. It’s insanely overbought… The rally is unsustainable… When it cracks, look out below… No, I’m not talking about the stock market. I’m talking about bitcoin.

Some weeks feature a contrast between past and future — a possible inflection point. Here are the current elements:

It is oddly appropriate that in a year everyone finally admitted markets are manipulated by central banks and broken by HFT algos, that on the last trading day of 2016, the dollar flash crashed with for no reason whatsoever. Shortly after 6:30pm Eastern, the dollar plunged by 150 pips against the Euro, once 1.05 stops were taken out, with algos sending the EURUSD as high as 1.07 in a matter of seconds...

This post ‘Red’ Is The New ‘Black’ In Saudi Arabia appeared first on Daily Reckoning. What a weekend! Thanksgiving, huh? Could’ve fooled me. On Friday — “Black Friday” for shoppers — oil prices fell to four year-lows, unseen since the post-crash recovery days of 2010. Meanwhile, in trading pits across the globe, panic prevailed and red ink (or “blood,” if the analogy suits you) flowed. For oil, it seems, red is the new black.

This week, markets are likely to focus on US ISM Nonmanufacturing, services and composite PMIs in the Euro area (expect increases), ECB’s Monetary Policy Decision (expect no change in policy until further ahead), and Congressional testimony by Fed’s Yellen.

By Jarred Cummans:Today marked the end of a tumultuous week that saw high volumes accompanied by high volatility. The week saw poor trading days until Thursday came, when all hell broke loose. A massive sell off led to losses of more than 3% in most major benchmarks, as investors hit the panic button in reaction to Fed Chair Ben Bernanke’s speech and policy decisions.

By Price Headley: We knew we were due for a dip after the heroic rally three weeks ago; last week we got it. Still, it wasn't enough to snap the overall uptrend, nor the spirits of the bulls … traders ended things on Friday in a buying mood, not wanting to head into the weekend empty-handed in case the budget crisis was resolved and/or Europe doesn't fall into the ocean.