The collision of global markets and social mood

Tuesday, January 24, 2017

Tuesday -- Mnuchin's Dollar Problem, Brexit Trubs, India, Blind Guesses

S&P E-mini Futures:
Yet more chop.

Spoken like a true Goldmanite: Treasury Secretary Steven Mnuchin's wasted no time attempting to clear the biggest obstacle to a continued equity rally with his "excessively strong dollar" comments.

Hmmm, a Treasury Secretary whose first public words attack our currency. Is he working for the administration or his former employer?

Elsewhere, we're seeing how mucked up things can get even when the will of the people has been clearly voiced: UK's Supreme Court ruled in favor of a Parliament vote on Brexit conditions.

Not a good sign, but perhaps a catalyst for a much more green day in Europe than yesterday.

From the Times Of India: "Modi's decision in November to scrap 500- and 1,000-rupee notes - 86 percent of the cash in circulation - sought to crack down on tax dodgers and counterfeiters. Yet it has left companies, farmers and households in all sorts of bother." (emphasis added)

According to First Post in India, farmers are reported to be running out of cash to buy seeds.

Just imagine if they're unable to plant crops for food.

Modi better hope he doesn't get tossed to the lions in the next election.

Even with Mnuchin's excessive comments the dollar has rallied. Careful bud.

Still seeing corrective structures in CAD, EUR, GBP, MXN, and possibly AUD as well which could suggest the USD may have something extra up its sleeve.

Bitcoin down 1%. Want to see if this correlates to Risk On or Risk Off, China bullish or bearish. In progress.

Volume expanded on yesterday's rally but did not show more conviction vs the January 19th declines. Thus treasuries may be suggesting a complex correction higher followed by yet lower lows & higher yields.

WTI crude higher as NG rips even more so.

Gold and silver down while platinum, palladium, and copper rip higher.

S&P Outlook:
So far the 2254.25 swing point has held. Price action remains choppy. Yesterday's rally from the low already appears corrective. Still not seeing much edge except for a large razor blade ready to slice open those who would lose a blind guess.

That said, things could get interesting above 2271.78.

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