Summit Capital

Possible challenges to traders today is the following:

1. FOMC Member Fisher Speaks at 1:45 PM EST. This is major.
2. No major economic reports to speak of.
3. Lack of major economic news.

Yellen Comments Reversed

Initial Conclusion: This is not a correlated market. The dollar is down- and oil is up+ which is normal but the 30 year bond is trading higher. The Financials should always correlate with the US dollar such that if the dollar is lower then bonds should follow and vice-versa. The indices are higher and the US dollar is trading down which is correlated. Gold is trading higher which is correlated with the US dollar trading down. I tend to believe that Gold has an inverse relationship with the US Dollar as when the US Dollar is down, Gold tends to rise in value and vice-versa. Think of it as a seesaw, when one is up the other should be down. I point this out to you to make you aware that when we don't have a correlated market, it means something is wrong. As traders you need to be aware of this and proceed with your eyes wide open.

US Dollar –Down at 80.315, the US Dollar is down 38 ticks and is trading at 80.315.

Energies – May Oil is up at 99.03.
Financials – The June 30 year bond is currently is up 7 ticks and trading at 132.09.
Indices – The June S&P 500 emini ES contract is up 24 ticks and trading at 1872.00.
Gold – The April gold contract is trading up at 1339.40 and is up 93 ticks from its close.

Fed Tapering

The Fed, which cut monthly bond buying by $10 billion at the prior two meetings, will trim purchases by another $10 billion to $55 billion, and continue on that pace at every meeting before announcing an end to the program at its Oct. 28-29 gathering, according to the March 14-17 survey.

Putin Says Russia Doesn’t Want Ukraine Split After Crimea