For what it's worth, I'm short right now, as among other factors I am suspicious of a DJIA that is up 187 points largely behind strength in gold and the energy sectors.
Meanwhile, financials are in the red.
Will financials pull the broader market back down? Will commodities lift the market higher?
The more I think about it, the more I think we are moving closer to a deadlock and the more I like that SPX straddle trade...
Take a look at the dollar.
ReplyDeleteI know it is falling, but a drop of 0.5% isn't that big of a deal...
ReplyDeleteAt least for a change dollar is getting weaker and equity market is down, and commodities are up. XL capital -50% today, I am sure putting some pressure on XLF.
ReplyDeleteChina holding up well too, FXI is up 5% for the day. Money moving into emerging markets again :)
ReplyDeleteThe March U.S. dollar index traded at a high of 89.06 on November twenty-first, the day the SPX 500 and other major stock market indexes rallied sharply from their 2008 lows. The U.S. dollar index closed at 86.29 yesterday and appears to be forming a bearish head-and-shoulders pattern. This is a good reason why February gold futures have increased from the November twenty-first low of $743 to yesterdays close of $809 per ounce.
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