A Big Bowl of Slop!
We had a report all ready for you on what we call the “big bowl of slop” market as we have seen a decent amount of deterioration recently. But after getting past being held hostage by Mrs Bubble, next up was the Brexit. Markets have teased the upside and downside depending on which way the polls go.
As we write this coming back from the mountains of Colorado, Dow futures are up almost 200 getting back some of the recent downdraft…all because a new poll that came out says maybe not so fast…that the UK will vote no. It is amazing to us this is what the markets have to deal with. So, we will take a step back and see what tomorrow brings as a gap to the upside negates some of the ugly. Yippee! Keep in mind, the vote comes next. Keep in mind the Russell and NYSE sit where they were in late 2013. The Dow and S&P late 2014. The same for the Nasdaq which has been weak as of recent. This defines the slop. Foreign markets remain much weaker than ours. From highs, Japan is down almost 25%, the German Dax about 23% and the Shanghai down a whopping 45%!
The entire global market, is acting like a currency.
Dollar up, gold down.
Dollar up, Market down.
Dollar up, global stocks markets down.
Dollar up, commodities down.
Dollar down, gold up, stock market up, global stock market up, commodities up..
Q. Where is are the markets going next ?
A. In the opposite direction of the dollar.
Q. Where is the dollar going?
A. Where ever the fed wants it to go.
Ok, ok, I’ll not leave you hanging.
The dollar is in limbo, …….above and below the 50 day MA.
So:
Q. where will the market go ?
A. likely the same limbo.
Q. For the short term, where will the market go ?
A. Likely we will rally into EOQ ( end of quarter )
For now, I am long, I may be short in a week.