Tuesday, April 3, 2012

TLT/ The EU Close and the $USD

I believe I included these charts yesterday in the EOD wrap of TLT (30+ year Treasury ETF)...

 TLT 2 min- There's been positive divergences in TLT (which would imply a move higher as we've seen this morning, which would also imply a flight to safety trade starting).

 TLT 5 min

 Interestingly, we are just nearing the European close and look at the dollar, this is what is giving the market it's latest round of intraday strength that started at 10:20 or so.

Here you can see the rise in the Euro/Fall in the $USD, but will it hold? It doesn't seem correlated to the Factory Orders miss at 10 a.m.

Oh, as I write it looks like the Euro is starting to roll over. My best guess is the market is going to try to stay as neutral as possible until 2 p.m. when the f-e-d minutes are released, therefore we'll probably see a bit of this chop, best guess...

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