Calm Before The Storm – Market Update

This morning looks about as dead / flat / boring as most these days with “yet another” doji type candle expected in U.S Equities.

The Nikkei hasn’t done a thing overnight but most certainly looks tired here, with JPY now looking like it’s found a low. Check out the “waning” MACD as well RSI ( on your own chart ) on the weekly. This thing has been getting by on a lot of hot air and “funny money” as no one in their right mind is “actually” buying Japan.

Nikkei_Sept_15_Forex_Kong

Keep in mind that the correlation of The Nikkei and USD is nearly 100% , and USD is now as overbought as it’s been in years. I think you get the picture.

The next “decent move” should have JPY, EUR and GBP ( as well gold and oil ) moving higher while USD, AUD, NZD as well CAD move lower.

USD_Sept_15

We can also see the inverse correlation and completely “oversold” conditions in EUR.

Eur_Sept_15_Forex_Kong

I can’t suggest getting into anything new here today as it’s Monday ( and we all know how Mondays go ) but things are certainly falling in place for the larger trade at hand.