While July finished on a weaker note – with a mysteriously large sell order sending stocks sharply lower in the last minute of trading – it was the first time Since April 2010 that global Commodity, Equity & Bond indices all posted gains along with the US Dollar. The ominous nature of that otherwise positive statistic is that 6 days later was the famed “flash crash”.
All eyes are on the FED, and their policy announcement today, although yesterday’s action shows that hopes for a new stimulus package continue to fade. With the ECB and a handful of other global central banks meeting this week, expect for some wild swings as the headlines roll out.
Crude and Diesel markets are quiet again today, with WTI shrugging off an 11.6 Million Barrel draw in yesterday’s API report. RBOB continues its manic behavior, with nickel swings now the norm as more and more managed money flows in – and out – of the market. Technicals are stuck in neutral, so expect a choppy trading day with the DOE report and FED statement both working to set the tone.