SPX Rebound, Everything Else Still Looks Bleak

Financials found buyers today and energy sectors got a boost from yet another wicked rally in futures markets. Commodities in general are powering higher.

FX: JPY soft all day after horrible data overnight. Exited short USDJPY at 113.50, entered Friday @ 114.80. Retaining long exposure to CHF and JPY along with Eurodollars and VIX calls (all doing well).

Main focus on the upcoming Fed meeting on September 18th. Everyone seeing a cut, most even 50 bp. Absolutely absurd, I believe. Had the Fed seen August's price action as so severe that a 50 bp cut would be needed, chances are they probably wouldn't have waited for the 18th to come around. Accordingly, I've bought USD today against CAD (@1.0550) and intend to increase my USD holdings go into next week.

Data on September 11th:

0130 Australia August NAB business confidence (12)

0130 Australia August NAB business conditions (20)

0830 UK July visible trade balance

0830 UK July total trade balance

1215 Canada August housing starts (215,600)

1230 US July trade balance (-US$ 58.1 billion)

1230 Canada July new housing price index (0.7% m/m)

1230 Canada July international merchandise trade

1400 Eurozone European Central Bank President Trichet testifies

1430 UK July leading indicator index (0.2% m/m)

1430 UK July coincident indicator index (0.2% m/m)

1500 Germany European Central Bank member Weber speaks

1500 Germany Federal Reserve Chairman Bernanke speaks

2200 Italy European Central Bank member Draghi speaks

2245 NZ August food prices (1.2% m/m)

2330 Australia Reserve Bank of Australia annual report

2350 Japan August domestic corporate goods price index (0.6% m/m)

2350 Japan August domestic corporate goods price index (2.1% y/y)

2350 Japan July current account (Â¥1.520 trillion)

2350 Japan July trade balance (Â¥1.352 billion)

(Source: GCI Financial)

Next up: Monday Night Football!