The collision of global markets and social mood

Monday, March 28, 2011

Up And Down And All Over The Place

Asia is mixed, Europe is mixed, and I don't think I've ever seen metals, energy, grains, softs, FX, and fixed income so all over the place before. It's as if they all got put in a blender.

Precious metals could be telling us something. They all seem to be headed down in an impulsive manner.

Grains and soft commodities are searching for direction, in my opinion. Could they be gathering energy for one last scary ride higher on inflation fears while precious metals do not confirm? That could end up being the tell of all tells.

The dollar is higher this morning, which could be throwing cold water on its funeral pyre. Everyone says the dollar is toast. I've disagreed for a long time. Perhaps its failure to fail is starting to send jitters to record number of shorts against it.

Meanwhile the Swiss franc and the British pound have both been whacked over the past week. At some point I think all the bad loans made to Eastern Europeans by the Swiss banks will hurt the currency badly. I just hope I didn't miss my entry. Still waiting for .88.

As for the pound, I think the market is sniffing out their true intentions: they want to inflate their troubles away, which will sting the pound.

And finally, in the S&P, it seems a heck of a lot clearer to me now since Friday and even since my post last night. It looks like a rising wedge on the 30 minute overnight chart, headed higher.

I think I was too early in looking for a top last Thursday and Friday. I'm letting price do what it wants to without any reaction from me today until possibly late in the session. I think the S&P cash index has its eyes on the gap at 1320.

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