{"id":18722,"date":"2013-09-12T23:24:16","date_gmt":"2013-09-13T06:24:16","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=18722"},"modified":"2013-09-12T23:24:46","modified_gmt":"2013-09-13T06:24:46","slug":"market-mood-swings-toward-end-to-us-dollars-latest-rally","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2013\/09\/12\/market-mood-swings-toward-end-to-us-dollars-latest-rally\/","title":{"rendered":"Market Mood Swings Toward An End to the U.S. Dollar&#8217;s Latest Rally"},"content":{"rendered":"<p><strong>(This is an excerpt from an article I originally published on Seeking Alpha on July 11, 2013. <a href=\"http:\/\/seekingalpha.com\/article\/1544102-market-mood-swings-toward-an-end-to-the-u-s-dollars-latest-rally\" target=\"_blank\">Click here to read the entire piece<\/a>.)<\/strong><\/p>\n<p>Ordinarily, I would have called Wednesday&#8217;s (July 10, 2013) close on the S&#038;P 500 (SPY) a stalemate that potentially signals a reversal in fortunes for the index. The flat close occurred right at resistance from the June highs.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_18714\" aria-describedby=\"caption-attachment-18714\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_SP500.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_SP500.png\" alt=\"A stalemate between bears and bulls at resistance from the June highs\" width=\"500\" height=\"350\" class=\"size-full wp-image-18714\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_SP500.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_SP500-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-18714\" class=\"wp-caption-text\">A stalemate between bears and bulls at resistance from the June highs<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>The news cycle rules right now. This earnings season promises to be full of market mood swings if the reaction to <a href=\"http:\/\/www.federalreserve.gov\/newsevents\/press\/monetary\/20130710a.htm\" target=\"_blank\">the Federal Reserve minutes for June&#8217;s monetary policy meeting<\/a> and Chairman Ben Bernanke&#8217;s Q&#038;A session following <a href=\"http:\/\/www.federalreserve.gov\/newsevents\/speech\/bernanke20130710a.htm\" target=\"_blank\">a speech<\/a> are any indication. The stalemate in the S&#038;P 500 during U.S. market hours occurred as the market dipped ahead of the release of the minutes of the last Federal Reserve meeting on monetary policy, spiked up in trigger-finger response to the release, and then calmed back down to settle at flatline. Overall, the minutes contained no new information. What Bernanke said during the Q&#038;A of a speech later in the day apparently tipped the balance. {snip}<\/p>\n<p>Bernanke&#8217;s response was an implicit reference to the labor market&#8217;s poor participation rate and likely also an implicit reference to persistent underemployment in the economy. {snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_18715\" aria-describedby=\"caption-attachment-18715\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_DXY0.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_DXY0.png\" alt=\"The dollar index falls back from three-year highs and retests the QE2 reference price\" width=\"500\" height=\"350\" class=\"size-full wp-image-18715\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_DXY0.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_DXY0-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-18715\" class=\"wp-caption-text\">The dollar index falls back from three-year highs and retests the QE2 reference price<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_18733\" aria-describedby=\"caption-attachment-18733\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_GBPUSD.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_GBPUSD.png\" alt=\"The British pound soars 1.9% off its bottom versus the U.S. dollar\" width=\"500\" height=\"350\" class=\"size-full wp-image-18733\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_GBPUSD.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_GBPUSD-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-18733\" class=\"wp-caption-text\">The British pound soars 1.9% off its bottom versus the U.S. dollar<\/figcaption><\/figure><\/p>\n<p><figure id=\"attachment_18732\" aria-describedby=\"caption-attachment-18732\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_EURUSD-intraday.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_EURUSD-intraday.png\" alt=\"The euro practically goes &quot;parabolic&quot; intraday versus the U.S. dollar\" width=\"500\" height=\"350\" class=\"size-full wp-image-18732\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_EURUSD-intraday.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_EURUSD-intraday-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-18732\" class=\"wp-caption-text\">The euro practically goes &#8220;parabolic&#8221; intraday versus the U.S. dollar<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_18735\" aria-describedby=\"caption-attachment-18735\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_USDCAD.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_USDCAD.png\" alt=\"USD\/CAD goes from strength to weakness in a heartbeat\" width=\"500\" height=\"350\" class=\"size-full wp-image-18735\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_USDCAD.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_USDCAD-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-18735\" class=\"wp-caption-text\">USD\/CAD goes from strength to weakness in a heartbeat<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_18736\" aria-describedby=\"caption-attachment-18736\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_USDJPY.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_USDJPY.png\" alt=\"Wide churn in USD\/JPY since the Bank of Japan&#039;s QQE\" width=\"500\" height=\"350\" class=\"size-full wp-image-18736\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_USDJPY.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_USDJPY-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-18736\" class=\"wp-caption-text\">Wide churn in USD\/JPY since the Bank of Japan&#8217;s QQE<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_18739\" aria-describedby=\"caption-attachment-18739\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_AUDUSD.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_AUDUSD.png\" alt=\"Just a relief rally for the Australian dollar?\" width=\"500\" height=\"350\" class=\"size-full wp-image-18739\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_AUDUSD.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2013\/07\/130710_AUDUSD-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-18739\" class=\"wp-caption-text\">Just a relief rally for the Australian dollar?<\/figcaption><\/figure><br \/>\n<strong>Source for charts: <a href=\"http:\/\/www.freestockcharts.com\/\" target=\"_blank\">FreeStockCharts.com<\/a><\/strong><br \/>\n<\/center><\/p>\n<p>While it seems the accumulated sharp reversals in U.S. dollar currency pairs signals an end to its rally, I do not think this next equates to a sustained sell-off in the U.S. dollar&#8230;even against the British pound. {snip}<\/p>\n<p>Be careful out there!<\/p>\n<p><strong>(This is an excerpt from an article I originally published on Seeking Alpha on July 11, 2013. <a href=\"http:\/\/seekingalpha.com\/article\/1544102-market-mood-swings-toward-an-end-to-the-u-s-dollars-latest-rally\" target=\"_blank\">Click here to read the entire piece<\/a>.)<\/strong><\/p>\n<p>Full disclosure: long EEM put spread, short Australian dollar, short euro, long British pound, short Canadian dollar<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(This is an excerpt from an article I originally published on Seeking Alpha on July 11, 2013. Click here to read the entire piece.) Ordinarily, I would have called Wednesday&#8217;s (July 10, 2013) close on the S&#038;P 500 (SPY) a stalemate that potentially signals a reversal in fortunes for the index. The flat close occurred &#8230; <a title=\"Market Mood Swings Toward An End to the U.S. Dollar&#8217;s Latest Rally\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2013\/09\/12\/market-mood-swings-toward-end-to-us-dollars-latest-rally\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[58,20,21],"tags":[308,310,128,296,1195,376,28,309,127,297,447,1204,1196,115,203,1591,469],"class_list":["post-18722","post","type-post","status-publish","format-standard","hentry","category-federal-reserve","category-forex","category-u-s-dollar","tag-audusd","tag-australian-dollar","tag-british-pound","tag-canadian-dollar","tag-eem","tag-eurusd","tag-euro","tag-fxa","tag-fxb","tag-fxc","tag-fxe","tag-glenn-stevens","tag-ishares-msci-emerging-markets-index","tag-monetary-policy","tag-reserve-bank-of-australia","tag-u-s-dollar","tag-usdcad"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Market Mood Swings Toward An End to the U.S. Dollar&#039;s Latest Rally - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2013\/09\/12\/market-mood-swings-toward-end-to-us-dollars-latest-rally\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Market Mood Swings Toward An End to the U.S. Dollar&#039;s Latest Rally - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"(This is an excerpt from an article I originally published on Seeking Alpha on July 11, 2013. 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Click here to read the entire piece.) Ordinarily, I would have called Wednesday&#8217;s (July 10, 2013) close on the S&#038;P 500 (SPY) a stalemate that potentially signals a reversal in fortunes for the index. The flat close occurred ... 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