Notice the technicals for the dollar are indicating a turnaround is in order: the A/D line is rising, the CMF is positive and the MACD has given a buy signal. However, consider this against the fundamental background with the Fed indicating they will be buying Treasuries, engaging in QEII. Is this really an environment where we'll see a meaningful change of trend, or will the "rally" really be an opportunity to find a short entry point? The answer is most likely the latter.
Let's take a look at the three major equity averages -- the QQQQs, the SPYs, and the IWMs:
Over the last rally, the QQQQs and IWMs -- the riskier areas of the market -- have been outperforming the SPYs.
Cotton is still in a strong upswing. The chart has a "fanning" set of lines -- a set of continually escalating trend lines, pointing to a higher and higher rally. Also note the EMAs are bullishly alighted and the MACD is in clear buy territory.
