DXY continues tumbling toward our downside target [see: Capitulation, Aug 21] taking USDJPY with it. Although VIX is still in the basement, CL hasn’t broken out. So, stocks don’t have much upside impetus.
continued for members…
The futures aren’t very happy with the dollar’s drop.
But, VIX has kept things from getting ugly.
Even as DXY and USDJPY continue to settle lower.
We should expect no help from the oil complex.
The question is how effective VIX can be in offsetting the rest.
UPDATE: 3:22 PM
Not much to say about today except that there was some pretty nifty propping going on. I expect next week we’ll get some real capitulation.
Have a great weekend, everyone.
Comments
2 responses to “The US Dollar Capitulates”
On the ES it looks like a ‘Cup and Handle’ pattern from the beginning of August.
Great call on shorting CL! Do you think this will continue as long as DXY has more downside potential?