Monday, July 20, 2015

7/20/15 This chart could derail the stock market

If commodities don’t hold at 207 and conversely the USD goes over 100 I think it will be bad for the stock market.  The high dollar will be perceived as a restraint on exports.  Also the high dollar will be a restraint on corporate foreign earnings.  If commodities prices break out below then “deflationary” fears will abound.  Offsetting that is the belief that the FRB may not raise rates in the face of new lows in commodity prices.

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