MORNING DIP

Equities getting beat up today as the dollar moves on up and is higher by about 1% at the $78 level.

Gold getting hit hard as it is down by $24 at the $1,115 area.

NYSE-1400 net losers;

NAZ- 1050 net losers;

SPX- 125/370;

NDX 10/89;

TRIN- 2.2 with down volume about 6x the up;

VIX- 21.55- higher by 5% and about 2% under the SMA 10.

Strong sectors- nag gas, banks, junk, energy and retail while metals, gaming, emerging markets and airlines lag.

Energy starting to outperform again and the trade of long XLE short SPX starting to work -

Metals may also be worth a shot here as the RSI 2 on the DXY is approaching 97- other interesting RSI levels as follows:

SPX 20

QQQQ 20

DJIA 10

RUT 41

EEM 15

EWA 6

EWC 26

EWH 14

EWZ 5

I bought some VALE and looking to add some EEM/EWA as they are under performing of late but suspecting that may change soon enough.