The collision of global markets and social mood

Wednesday, May 31, 2017

Wednesday -- Trump Pulls Out, USDCNH Mess, Crude Mess, NQ Plays Solo

S&P E-mini Futures:
Modestly higher, but still below recent high.

Markets:
Asia mixed once again with Europe all green. Month-end window dressing.

Mood:
Not much in mood land other than Trump pulls out of Paris.

"That's hot."

FX:
Today's big mover is the Chinese offshore yuan (CNH). Notably stronger.

Per Bloomberg, CNH jumped the most in four months as funding costs exploded amid speculation policy makers were supporting the currency in the wake of a surprise sovereign rating downgrade.

Beijing hiked the overnight lending rate sharply, intent on burning shorts. Seems to be succeeding.

Treasuries:
Three-wave structures inside of three-wave structures. Messy.

Energy:
WTI crude cratered after its three-wave rally. Interested in the 46.50 area for longs. NG down in choppy trade.

Metals:
Silver red while gold, platinum, palladium, and copper rally.

S&P Outlook:
All the action appear to be in the NQ & NDX.

NQs are currently gunning for another five-wave rally, the end of which may be a prime spot to try shorts. Maybe around the 5840-5880 area. Maybe even 6000 could line up.

Seems the S&P may be taking its cues from NDX. Dow still lags. As does Russell.

NDX does not make me bullish as it probes the ether virtually alone.


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