It took a bit, but now we are seeing $USD movement

Again if you read the last post, there's no doubt in my mind that the $USD smaller negative divergence (most recent) was in fact put in place for today. A "Hawkish" set of minutes as in "Rate hike in June is likely" would send the $USD up, a dovish message such as "June rate hike not likely", should send the $USD down).

Remember the first rule of anything F_E_D related, the Knee jerk reaction, although this one was slow...

First the $USD sees a sharp move down, then up and now trending down as expected, but I don't expect this to last long.

When I have time tonight to explain my Carry trade theory, things should make a bit more sense. For now the $USD is seeing the move down I had expected, everything else other than stocks is pretty flat for the moment.

I'll be watching to see if the VXX accumulation of the last almost 2 days holds, if so then it was not protection in front of the F_E_D, but rather a larger reversal process unfolding. I'm hoping to see Transports lift higher, although the lower they go the better it is for our core Transports short position, but I'd like to get one last crack at it for some who are interested and didn't have a chance yet.

I don't know if this is because of the lack of initial response to the USD movement, but it Eric Hunsader from NANEX, the keepers of HFT information, confirmed just as the market was starting to run that there was "Spoofing" on Twitter (not the stock, the feed).

This fits with the very near term outlook (as well as reasons why I didn't put out a VXX Trade Idea.

In case you are not aware of what spoofing is...

Spoofing

1. An illegal practice in which an investor with a long position on a security makes a buy order for that security and immediately cancels it without filling the order. Spoofing tends to increase the price of that security as otherinvestors may then issue their own buy orders, which increases the appearance of demand. The first investor then closes his/her long position by selling the security at the new, higher price. Spoofing is a form of market manipulation. See also: Pump and dump.