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I took profits in a few names today, and am basically letting this sell-off play out while sitting on heavy cash. As I have been indicating, there has yet to be any type of real technical damage to the S&P 500. However, it is concerning to see silver and energy weakness, as well as U.S. Dollar strength, bringing down equities as a whole. Going forward, that is the key point to watch: Whether capital has the will to rotate out of commodities and into other sectors within equities, or rather we see an aversion to the asset class as a whole.
While today’s price action certainly indicates the latter scenario, one day does not a trend make. We are simply looking to see whether these correlations persist. Clearly, as you can see on the daily chart of UUP below, the Dollar has regained its mojo. With that said, it is still in a clear overall downtrend.
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I don’t see how removing the high oil “tax” can be a bad thing. It should be good for both sales and earnings for a while. We”ll see what Mr. Market thinks.
Indeed
Unfortunately, it’s not improving on production levels.
You have taught me well. Super calm today. Watching similar things– especially FXE volume and UUP and 20 day.
Excellent
Breaking Bad = awesome show; love the dark humor…
Thanks for the commentary!
Thanks…can’t wait for the new season in July.
I’ve had the chance to meet Vince Gilligan and some of the production team – so talented, so down to earth. I’m with you in looking forward to the new season! Thanks for all of the learning.
awesome!