Commodities are holding up better then the S&P
Here are commodities vs the Euro, there's a clear disconnect and I may take a look for a trade there on the short side. The UUP/$USD hart is confirming what we are seeing on this chart, commodities are stronger then their correlation, I'm guessing due to the Iran/Citi news, but I'll dig a little deeper.
Even the S&P is stronger then the correlation with the Euro thus far, so I'll be watching for an opportunity to maybe set that BA trade up again on some market strength so long as the Euro remains under pressure.
High Yield Corporate Credit has sold off below yesterday's lows and is underperforming the broad S&P Index, credit tends to lead.
All in all, it looks like the environment for another BAC or commodities related short trade is setting up.
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