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European Equities turning up to multi-day highs; Dollar advance continues

US futures largely still unchanged but Europe making a sharp move higher today, which in SX5E, SXXP,DAX, is making new multi-day highs, and w/ 3 hrs to go, set to make the highest daily close since mid-August-   US Dollar advancing again this am, with gains coming largely vs Yen, , but 0.25-.30% gains vs Euro, Aussie and Canadian Dollars, while Pound largely muted.  Yields turning up as well this am in US and some evidence that the recent severe flattening should be ready to reverse and turn back higher at least for a bounce.  For now, much depends on the Jobs number Friday coming in strong to likely help the Dollar and Yields continue to press up-  and thus far, the breakouts in 2, 5, 10 yr have not been followed by 30, but there is some evidence that 30 yr yields could begin to gain some ground, relatively-  

5s30s Close to turning back up after severe Flattening in recent months

5s30s Close to turning back up after severe Flattening in recent months

Crude higher by .80% while Gold sagging, as might be expected with ongoing Dollar gains, and commodities overall still look weak outside of the Energy space, and could show greater downside acceleration with the CCI index getting under 415-  For today, S&P has largely languished since yesterday around 1pm, consolidating only 3 ticks lower at 2178, and no meaningful evidence to sell into yesterday's gains.  The NASDAQ's "sell" thus far has just turned out to be just consolidation and no real decline, while sector ETFs like XLK still need to move up for 3-4 weeks HIGHER before getting any real Weekly signs of exhaustion-   A bullish stance seems right for US given recent improvement in Financials while Europe has moved to multi-day highs, thinking that gains INTO the Jobs report can happen, but given the neutral churning of indices since mid-July, extreme selectivity is necessary-  

 

DAX turning back up to multi-day highs, similar to SXXP, SX5E, a short-term positive

DAX turning back up to multi-day highs, similar to SXXP, SX5E, a short-term positive

This morning's report discusses the Insurance breakout in KIE , but also that Financials as a group have NOT yet made any type of relative breakout yet that would suggest addtl followthrough-   Areas to sell gains today for ES lie near 2186-7, and then 2190-1, so the high '80s should be an area to sell for trading, though closes there by end of day likely should lead to addtl upside followthrough-  On the downside-  2168-9 is important, then 2156-8-   Movers in Pre-mkt today : BCEI, RIGL, OREX, ARRY, RBA, UAL, SPHS, MDLX, VSTO on the upside, while ANF, SCSC, HSY, GIII, ISLE, CBK are all lower-

Insurance breakout yesterday worth noting, & many stocks, such as AFL, CINF, MMC, AJG, AON, AIZ, FAF, PRA, TMK, look like good technical risk/rewards