Friday, November 13, 2009

Financials Down, Russell Underperforming Dow, Dollar Down, Oil Down?

Financials are a good leading indicator and are negative for the day.

Russell is underperforming, the money is hiding in the large caps, believing the dollar weakness is going to help international earnings.  But the dollar could easily be poised for a snapback rally over the short term if market weakness is headed our way.

What's interesting is that oil is down and the dollar is down.  Usually the reverse relationship has been working. Will be something to watch going forward to see if this is the first sign of a breakdown in the U.S. dollar linkages to all asset classes.

Edit: Entered a very small Short Position in Financials

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