Late Night Correlation Update – is something brewing(USO)
and YES something was brewing.. which i spotted … what was brewing as an absolute algo orgy of epic proportions.
Good morning. We have an interesting day setting up tomorrow with China PMI printing 48 which apparently sparked some sort of dormant buyside algo. WE have all major commodities up including crude oil, CORN pegged up on highs, treasury’s are down and copper as well as GOLD which is currently at 1907 an OZ.
Perhaps something is brewing for tomorrow, more quantitative easing whispers ahead of the Bernank’s speech at Jackson Hole at the end of this week? Or maybe some other happy go lucky not good for the macro scheme of things BS financial trickery. Whatever the case may be, trade this market up and down. Trade what you see, if we rip like a son of a b*&# go with it, we know the machines are in control .. When the machines see an opportunity to all get on the same page, they can move these markets so fast in such little time its almost magic if you an onlooker..
Anyway.. look for the ES_F to break out of these ascending triangles to the 1135 level.. the ES_F and NQ_F are perfectly correlated .. both up .8% ..
the dollar is quiet and down slightly as of 1 am… though the euro is picking up steam..
what puzzzles me is gold up and holding firm and treasuries still selling off..
very systematic trading tonight.. each new high is bought with very large volume considering time of night and previous 1 min candles.. this goes true for all assets.. money is moving around..