OUT OF THE GATE
Calendar Resaerch’s overriding thesis of the past few months is that at upcoming dollar rally would arrive with simultaneous selloffs in stocks and the precious metals, and then later in bonds. The market is following that big picture analysis to a “T.” These new trends will likely pause and catch their collective breath over the next few days, but they are still quite young.
Our short sale on the S&P on Monday’s opening was more than fortuitous. All indications are that this move is only the beginning of a large move down. We’ll hold the short with plenty of room on the stop. Lower the stop to 1208 basis the March future.
Crude oil is interesting here, with indications (provided by the daily Cycle-Trap indicator) that a fast move up is possible. If 44.40 is exceeded, oil should see 47.50 in short notice. Those prices are basis the February future.
Metals trends are down and the dollar trend is firmly up. Bonds are neutral.
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