USDX : The Driver

• This chart is absolutely central to my core book positioning. Without worrying too much about causality, what is currently evident is that USD up = stocks down = commodities down. Rates not sure. This 1 chart represents (>80% of) the market.
  
• Monthly : Retracement passed the 38% mark. Usually would expect this kind of move to go on to reclaim the 50%-62% Fibonacci levels, ie somewhere between 81.90 and 83.72 vs current 80.47.
• Weekly : Descending wedge breakout worked beautifully. Now embarking on series of higher highs and higher lows = Uptrend.
• Core book : Long USD expressed in short Copper, short EUR+GBP, short S&P.