Green Dollars, Red Results

It's amazing the amount of red that happens when the dollar as much as bounces. The commodity and FX complex is feeling it this morning. Softs, grains, metals, energy, and FX are down as the dollar tries to stage a mini recovery bounce. It would look much better above 80.50, but the warning is clear: should the dollar get its mojo back, asset carnage could ensue.

That gold and oil have both chosen to slide on dollar weakness is a larger warning that few are noticing. Oil especially seems to be saying that demand is falling.

Demand is not falling for equities and risk of any kind. Corporate debt issuance is booming. Investors keep a near-constant bid for equities. Whatever pattern has occurred since 10/23, the rally appears to be slowing its ascent the closer it gets to 1778. The S&P reached yet another record high with inverted A/Ds. Not good.

I was stopped out yesterday on some long calls. If there's a new high today I will likely miss it. I'm still interested in buying dips, but stops are getting harder to find.

For now, 1752.45 should suffice.