Dangerous Curves Ahead

With Fed testimony, the Brexit, key economic data and the fate of the Bachelorette hanging in the balance, this is shaping up as an extremely volatile week.

After a massive 8.1% ramp in oil futures over the last two sessions, CL is finally taking a break. It’s a horribly perverted-looking chart, but we expect no less from CL. It has become the primary driver of algorithms which determine where the “market” goes each day. And, when it slumps, USDJPY springs to life, as it did last night — adding 1.12% from the overnight lows. Note that USDJPY reached our 103.69 target — but, 3 days late. The delay helped stocks rally quite a bit in the interim.