Tuesday 26 May 2015

1pm update - USD not cooling

The USD is not seeing any kind of intraday retrace, holding sig' gains of 1.2% in the DXY 97.20s. The precious metals are (naturally) under strong downward pressure, Gold -$18, having lost the psy' level of $1200, Silver -2.0%. Oil is similarly weak, -3.4%


USO, daily



GLD, daily



Summary

*USO looks vulnerable to at least another 3% lower, with mainstream chatter of Oil falling to $55 or so.. which does look probable.
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Without question... most should be placing their attention on the USD. Unless it stops going up... major problems are ahead, especially in commodity land.
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notable weakness, coal miners, BTU -5.7%.. breaking a new historic low of $3.42... utter sector destruction, with ACI, ANR, and WLT all on the path to disappearing entirely.
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Bonds...

TLT, daily


Increasing strength - higher for the fourth consecutive day, and now its a case of whether TLT can break a new historic high (>137.38).
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stay tuned !