US dollar index not looking good for Equities.

[Electrox]

85.00 is holding and looking very strong. this index tracks where the big money is going.. following this index help with not trying to pick bottoms on equity markets.

[CrownA]

I cannot understand why the Dollar i so strong with the US printing $787bn, and Obama wanting another $750bn to print. And Gold not exploding?

[Electrox]

remeber the chinese.... thy own lots US T-bills.

[_nova]

USD Index daily chart either has a double top or a very rough inverted HnS. Whichever way it breaks from current levels, it's going to be fast, vicious and blerrie scary

[_nova]

Have a look at Steve Barrow's G10 Today research. He once again gives clarity to a very confusing subject. The risk is definitely leaning toward the EZ (you know, the guys we do most of our trade with?). Yes, the US is in trouble and Japan even more so by certain measures but the EZ is joined at the hip with East Europe and things there are getting as explosive as nitro in a fool's hands. Look for flight into the USD as the relatively lower risk since the carry doesn't hold much credibility any more. That points to the USD probably breaking to the upside. Geez, the FTSE is looking ill?

[Electrox]

Nova why do you think that our markets are being so resilient today besides the weaker rand and strong commodity prices? are we being manipulated here?

[_nova]

Electrox I seriously doubt anyone or even an institution can manipulate the market in these kinds of conditions. I'd go with Simon's view that this market is going to do whatever is does. The safest bet is not to guess now and to wait. Better to step back and look at longer term trends and stick with that. Actually, if there is any kind of manipulator then it is fear, as frankly the only thing that will manipulate the market right now is if a collective attack of the willies stampedes the whole herd.

[Electrox]

ok, agreed, also just saw your post under "FTSE".

[Electrox]

index just stabbed through 89.00 THe okes are flocking on steroinds here.

[_nova]

15h30 is US Personal Income (Prev -0.2, Expect -0.2) and PCE (Prev -1.0, Expect +0.3). If PCE comes in negative there could be fireworks once it filters through the market. The USD Index is spoiling for an upside break

[_nova]

IS Pers Income +0.4% in largest gain since May 08. PCE +0.6%. Good for USD, look for drop then pop on USD Index OMO

[Electrox]

I dont understand Nova> usd to pop?or us index?

[_nova]

USD Index, it's already dropped to 88.70 and now recovering and printing 88.80. Thing is the 'good news' was actually 'bad news'. The upticks in PI and PCE is mainly due to US Gov employees getting 'cost of living' increases and spending it. The mainstream economy is saving at a 5% rate and much worse off than the gravy train and that's where the real truth lies. Let's see how the market digests this. US futures pared losses but still well red. I think we'll maybe see a decisive break of 89.00 and that will see the EURUSD tumble.