Tuesday 26 May 2015

10am update - strong dollar causing problems

With the USD +1.0% in the DXY 97.00s, most $ denominated asset classes are under significant downward pressure.. even equities. Metals are especially weak, Gold -$16, with Silver -1.6%. Oil is similarly on the slide, -1.9% in the $58s.


sp'daily5



GLD, daily



Summary

*metals look very vulnerable... and if the USD doesn't start to cool... the Nov' 2014 floor will be taken out.
--

As for equities... a retrace to the 50dma is now on the menu.. but still.. its nothing of any particular significance.

The wild card remains Greece, but I would guess they'll kick the can out another month or two.

VIX is building strong early gains +15% @ 13.90s.... next resistance is not until 15.00.... which would bode for sp'2100.. where the 50dma will soon be lurking.

-
notable weakness: GDX -2.5%.. as the metals see sig' declines

coal miners, ANR -12%....  BTU -3%.... dire sector.
-

awaiting a trio of data at 10am...
-


Overnight gains in China, +2.0% @ 4910.... truly incredible.. with the giant 5K threshold viable in the next session.