claydoctor

SPY and Dollar weaker, commodities strengthening, inflation up

Short
FX:USDOLLAR   Dow Jones FXCM Dollar Index
1
Dollar strength now too strong weakening economy effecting stock prices finally? SPY and dollar have been correlated somewhat during the bull run, but now has that strength turned sour? Earnings did not show as much as of this as I thought they would, mixed bag. But inflation not headlines yet but stirring... dollar weakness will let commodities in general strengthen from here, after this retest failure of the channel, and breaking horizontal support, shorting SPY, going long oil and gold and lets see if this sell in May stays alive. High volumes yesterday on sells, and have to notice high call volume VXX and VIX. Minus food and Oil, inflation at 1.8%, as this rise in oil continues, FED happy, Happy, Happy ending deflation worries (worst fear of all) and happy having to see and deal with a bit of inflation, which they can put the kabosh on by raising rates, which is already half baked in. The one and only thing that would have spoiled their plans was deflation, and they will help oil rise to make sure this inflation trend continues.
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