XLU

The story of the day is that defensive/income based sectors are doing well.
This tells us that the market expects the Fed to delay tightening until "conditions improve".
I believe that general equities will continue to weaken today and will start to bounce tomorrow while traders will try to front run a "non-hawkish" Fed.

This is also why the US$ is down and Gold is up.
Short traders in the PM sector will have to cover their shorts before Wednesday.



Pascal

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