Credit/Risk Assets Still Dislocated and Look to be an Excellent Short Entry

There's some news out just in time for the gap fill attempt (ironically) and I'll get to that as well as the deteriorating situation in the Euro. Remember, we have Bernakacide and the merry men of the F_O_M_C today, I would think they won't like the strengthening dollar, but I don't know that they'll due anything today about it.

 Here we see the trend and a severe dislocation in commodities, this has brought on the VALE trade idea as well as the China short ideas and more to come, but the point of these indicators is to look for dislocations like this to use as entry points either short or long, but in this case short as risk assets do NOT confirm the rally in equities.

 It's little wonder that HY Credit sold off so badly this a.m.

 Rates have had two bullish dislocations in white and 2 bearish in red with the current one looking very bad, equities gravitate toward rates.

 The Euro is in big trouble this morning and will have its own post.

 Longer term, the dislocation here is the worst we have seen.

 HY Corporate is also showing a recent change in character mentioned yesterday.

 Here's Financials momentum today, pretty bad.

And longer term, this is one of the reasons we have started stock picking in the financial sector.

Again, as I said yesterday, I don't think this dislocation will last much longer before the market moves down, barring any surprises from you know who.