Thursday, May 5, 2011

5/5 9:25

Dollar strength is mirroring stock weakness.  Stocks, commodities, and currencies are "risk-on" assets while bonds and the dollar are "risk-off" assets.  Risk-on is fading and risk-off is rising as seen in I1, smoothed as 30-day M/A.

The stock market is burrowing into the critical M/A envelope.  When DJI gets to 12,600 I'll lighten up on the shorts until it can clear 12,580.
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2 comments:

  1. AnonymousMay 5, 2011 at 6:28 AM

    Steve

    Could we be headed to 1320 spx?

    Jack C

    ReplyDelete
  2. SteveKotelesMay 5, 2011 at 6:48 AM

    Jack, if we clear 1330 we should go a lot lower, but clearing 1330 might be tough. It corresponds to the DJI envelope at 12,580.

    ReplyDelete

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