The dollar has had a substantial rally against the Euro this evening of almost a penny. Very surprising in the wake of todays U.S. equities performance. Could this be the wild card for a big rally in stocks to-morrow.
Pabst, I was thinking along the same lines. I was reading in FT.com how the dollar was surprisingly resilient in European trading hours on Monday. Hmmmmm..... VIX stretched almost as much as Van Halen's old pants, the psychological indicators (AAII BULLS/BEARS), the Rydex Bull/Bear ratio, both pointing to fear.
absolutely...of course, I've come to expect just about anything these days as correlations seem to be in rotation...my tummy feels like one feels after dropping down the rollercoaster...preparing for that bounce...can't help it...I'm on my guard...like a cat on the prowl...mindful that I might want to fade myself...more later
Maybe in the short term we'll get a bounce (although I suspect it will be wednesday), but the fact that BOJ, FED, and BuBa all intervened to support the dollar this morning puts the writing on the wall. My guess is everybody's (i.e. international holders) are trying to head for the exits in as orderly a fashion as possible..
. When the dollar rallies like this does it have any implications for the US equities markets? Does it mean that we might expect a rally tomorrow or Wednesday? My naive beginner logic tells me that because people want the dollar tonight that they also want US equities because they are really one and the same. Anybody?
The $ rally is short term event. There are too many worldwide corporations(Europe, Asia) who wanna be light on their current $ position.