|5 min ES|
Well well well.. quite the morning we have had, we came in green and quiet then all hell broke loose as crude started bidding in 20 spurts without any fresh catalyst. The lack of catalyst was short lived as a rumor the straight of hormuz was closed by Iran for a pre scheduled military exercise. This smelled of BS from the get go as crude offers were lifting a dollar at time, highs were faded from 101.25 down to below 100. Which was justified as a mid east news agency came out 1 hour post fade stating the straight is open.
As for equities we they followed crude higher into 1244’s before fading like a rock once the arbitrages realized they were holding a bag of crap. Sure enough headlines once again align with technical’s as Merkel states she was not going to raise the ceiling on the ESM bailout.. this send the EURO to fresh month lows and the dollar into nearly 11 month high of over 80.83. the ES found a bid down around 1230 as euro sellers and dollar buyers were exhausted for the time being. once the big driver trade stops pushing equities begin their pre programmed melt up .