DXY is stuck on the spot:
The EUR position long came off a bit on CFTC:
The Australian dollar fell but was still firm:
CFTC longs are increasing as markets buy the dip:
Gold is likewise stalled within a bullish pennant:
Positioning is working off the CFTC long:
Oil has normalised:
Base metals are mixed:
Big miners fell:
EM stocks are trading on DXY:
Junk is describing a warning:
US yields remain crushed:
While stocks look increasingly shaky. Nasdaq has broken the neckline on its head and shoulders top though it is not yet decisive:
More selling still looks odds-on. The US “recovery” would still be better named the Second Great Depression:
The Fed’s balance sheet is shrinking:
Fiscal is disappearing into electoral oblivion:
And now, Supreme Court Justice Ruth Ginsberg is dead. There are doubts she will be replaced prior to the election. This throws open the possibility of a deadlocked US election, real or engineered, followed by a deadlocked Supreme Court, given its numbers fall from nine to eight, though conservatives still outnumber progressives 5-3. This also suggests that Trump will push get that number to 6-3 before the election. Markets were already pricing election volatility before this:
And there is precedent for trouble:
I haven’t even mentioned the rising risk of a hard Brexit.
The Australian dollar bid will not survive a downside break in risk.
