Whooo doggie !! What happened this morning seemed to me to be something like a bulldozer running through a living room. The sharp moves for the US dollar and it’s mirror image in commodity markets were simply jaw-dropping. This morning we all saw it, Crude was strong, Gold was strong (really strong), everything else was pretty strong too. Not the dollar though. That however, changed. The DXY bottomed in the 93.90’s, and quickly soared all the way to 94.75 before cooling off. The Euro, and the Pound both rallied hard, and then sold off harder. Helicopter money from Mario ?? Not really. Future rate hikes here ?? Doubtful, if you saw the Philly Fed. Maybe just not anticipating any easing by the Fed is the new tightening, or simply divergent enough…. on this brave new planet we call Earth.
The rapid rise of the dollar this morning forced all of your favorite commodities lower in a flash. Everything is pretty much back where it was around midnight, but wow…. that was a heart attack a minute while it lasted. You wonder why I eat right, and exercise.
1) Where’s this morning’s pivot point ?? Why, it’s 2099 for the S&P 500…. yet again. Bored ?? No, when something works over and over, you say “thank you”.
2) Utilities, and Staples are being taken to the woodshed. Healthcare, and Discretionary names are leading the winners. We have a “Tale of Two Transports” being told today. The Railroads are for the most part having a nice day (UNP up 5%), while the Airlines are clearly having a poor one. (UAL is down 11%)
3) All of this ultimately sideways turmoil has put a bid under the VIX, but there is no flight to safety…..as Treasuries are as soft as is those Utilities that I just mentioned. Gold is well…. gold.
4) Advancing volume at the NYSE is higher than is declining volume, but this is as close to a 50 / 50 split as you will ever see.