His comments come on the heels of remarks made by his Swiss counterpart who said that the Swiss National Bank purchased euros to buttress the single currency.
"It is a regular procedure of central banks," to intervene in currency markets, Bruederle said. "It is not a secret," that central banks have a foreign exchange rate target, he added.
Bruederle said "eruptive" movements have to be avoided. He previously said that China holds 25 percent of its foreign exchange reserves in euros. Why is this important? It just confirms how active central banks around the world are at manipulating markets. I'm sure Minister Bruederle has gotten some, um, official phone calls. The rest of the news today was running about as expected. Consumer Spending was flat, Personal Income was higher (Chucky saving or paying down debt?), there is no (cough) inflation if you don't use energy or eat and Consumer Confidence was slightly higher than expected. However, the closely watched PMI was lower meaning business expansion was slower than expected. This also means next week's ISM reading probably will be lower also. May ended with around an 8% loss for the Dow Jones Industrial average while the NASAQ was down a little over 8%. Volume today was moderate due to the impending holiday meaning many traders settled-up trades yesterday to extend their holiday maybe. Breadth again returned to negative. The NYMO is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term. The short-term situation could lead to another down leg. The McClellan Summation Index is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended. The correction continues but hasn't reached bear market status yet. The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise. Fear still remains present as markets remain unstable. Continue to Major U.S. Markets
XLE: Investors don't know what the future is for this sector. We need oil and even most serious environmentalists know this. But, clearly the spill is going to hasten change one would think. Continue to Overseas & Emerging Markets