We saw some weakness in SPX et al a short time back when Draghi hemmed and hawed over more liquor for the euro_punchbowl.
\nSo euro up, bucky down. (Briefly) against the prevailing trend. A trend where developing country currencies have really been hammered.
\nNow Jellin has made it clear that she means business, for another day or two.
\nSo the FX trades … after a brief respite … look to be back on trend. Dollar up, everything else down.
\nSo I suspect money managers the world over … especially outside the US … will continue to HEDGE or better, by parking funds in the US, keeping SPX & Co afloat a while longer.
\nAnd bucky up should continue to keep the pressure on all things VLCC’d or Baltic’d. Brinks too (before long imo).
\nI’m watching the EW counts for DX for guidance on when that may reverse.
\nMight not be an easy call, as final waves can subdivide and extend.
\nBottom line though … the larger patterns we’ve been seeing, are not yet at major risk of reversing from what I see.<\/p>\n","protected":false},"excerpt":{"rendered":"
We saw some weakness in SPX et al a short time back when Draghi hemmed and hawed over more liquor for the euro_punchbowl. So euro up, bucky down. (Briefly) against the prevailing trend. A trend where developing country currencies have … Continue reading