Mid-Day Thoughts

Good Afternoon,

                       Just what the heck is at play here ?? Let’s look into this a little bit.  I’m not going to say that there’s any skulduggery afoot, but …… maybe it’s just tomfoolery.
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1)  Has anyone stopped and asked… Are Janet Yellen, and her henchmen just massaging the US dollar to an already agreed upon global point of compromise ??  I mean the DXY gets strong, up somewhere in the 98 to 100 range.  Poof, US multi-nationals get hurt, and the Chinese get upset about capital outflows.  The DXY gets softish…say down around 93…  The ECB, and BOJ phone in their complaints.  So, the big hammer swings when she has to ease the DXY lower, and she let’s the dogs out when it gets too weak.  Food for thought.  Are they all full of it ??  Are their opinions their own ??
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2)  The euphoria of this morning seems to have worn off for equities.  Mid-day support has been found at $SPX 2062, which is our level in this neighborhood.  If that should crack, the ball rolls as far as 2055 before it hits something.  I believe there will be resistance at 2069 should the index make another run this afternoon.
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3) Tech is again the market leader, while the pop in Crude prices after this morning’s number that led Energy, and financial stocks higher has clearly abated.
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4) There is some short term profit taking in Gold, and there is an easily identifiable steepening of the yield curve today.  The 30 year has taken it on the chin along with the 10 year, while everything from the five year down has held firm.
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5) Are we at the highs of the year ??  Yes.  Are we anywhere near the highs of last year? No.

3 thoughts on “Mid-Day Thoughts”

  1. Sarge, I’m surprised at you, at our age you should know better. If you’re head of a central bank or the IMF it’s not WHAT you know it’s WHO you know. Now if I had the good Doctor’s cell number – “Janet do us a favour…………….” I know I’m just being daft Englishman

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