Roll...

Roll..Roll the equities!.  You never want to see equities rollover midday like today back to overnight SPX futures low (903) after a rip to 923,  but,  since the upside move caught many by surprise,  including longs with profits out of nowhere since Friday when the end of the world call was coming from Bears at 875SPX.    Why not take unexpected profits before a long weekend??.   We doubt shorts were in any condition to lay out fresh positions today considering they just got burned pressing, ironing their shorts on lower highs/lower lows last week.   So, maybe until we get more eco’ data, such as tomorrow's (Phily Fed (May biz) , we really have to stick to the notion of being in a range of (875-929).    We'd rest if we break the recent break to upside levels of ~895-896 , we wouldn't be plucking at dips till lower.

A lot of the attention today was on the breakdown of the Greenback.   This fall has just invigorated the reflation trade further since the treasury move in March.   We don’t mind profit taking,  but when it’s mixed with a failed breakout as seen by the $CRX  daily,  we would caution here for a breather, even,  if the $USD falls further out of bed overnight.!   The FED statements implying more purchasing whipped the USD more, but the commodities- linked trade faltered.  Simply…the persistent weakness in $USD with commodity stocks trade diverged finally in the afternoon.    Also, we didn’t like action or data from CAT.  A little bit of the ‘stabilzation’ talk , one point we were highlighting in ‘The Premise’  to keep this mkt rolling on is getting nicked a bit here.  Thus, we are watching the Phily Fed for a possible downtick # as a cautionary tale.