“Adopt the pace of nature: her secret is patience.” – Ralph Waldo Emerson

As markets continue to grind around at ATHs, we continue to believe that the next aggressive move will be to the downside. In today’s session, we will go through both recent warning signals and new warning signs that are appearing under the surface. The are more and more flashing lights and participants really have to be careful in what could easily end up being another vix-style-debacle.

On the currency side, as we have been discussing, the most interesting development is that the DXY short trade is trying to get some traction. The weekly closes will be key, not on in FX but also in the commodity complex. As we stand, the bulls still have reason to hold on to their view but if we get a little more downside traction, a lot will have to re-position.

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