Some big fx moves continue-
Quite a large pull down in aud gold price overnight- 66 quite a big contraction on top of yesterday’s
asias reaction to that ongoing fall overnight could be hard with a lot of margin in the system
usd gold a further fall from yesterday’s close
Obviously and testing 1800 with first close below 2011 ath close at 1818 ish
vix continues to be crushed and equities therefore crank- dow new nominal record- Russell 2000 record- usd down a bit more
energy prices up strongly - I note many leveraged etfsx3 are back after being booted a few months ago in many commodities including oil
these price moves are all a further crimp on producer margins- nothing you don’t know - might be disappointing for those that took the strain yesterday looking for a bounce which was not delivered
I think aud gold Low in March was 2400 before big bounce and fx swings from their extremes - suspect many may hold till it tests and resolved itself there-
I got the sense from trade that many began taking some long term profits yesterday In some
Gold stocks- probably more today but market makers will no doubt cause some wild swings with options expiry coming tomorrow
lots of risk about imo for local producers
equities upski -
big move from yesterday following yellons nomination -
she famously said in April 2020 congress should reconsider the fed to buy equities - that view now being nominated as secretary of treasury potentially re enforces the fed put and puts a total dampener on the need for equity hedges - hence one of the reasons in my view that all equities everywhere go vertical at present
https://www.google.com.au/amp/s/www...t-congress-should-reconsider-allowing-it.htmlI’m not saying she/ the government will buy equities but that nomination known for a few weeks is perhaps a reason for this mega equity surge together with the removal of trump even though stimulus will likely be smaller as blue sweep didn’t happen
time will tell - good luck
