OFFICIALLY IN PANIC MODE

Some quick notes for the US session:

Yesterday, the US market took another heavy beating and lost another 7.6%. Overnight futures accelerate further, and are now hinting at a -28% decline (no that’s not a typo) in the value of US stocks over the past 2 weeks. Following suit, Europe and the UK are seeing similar severe declines today, down appx. -7% in the UK and -7.3% in Europe.

The dollar has gained a lot of strength last night, and the more this continues, the stronger its going to get. Carry trades continue to get hammered and the same themes we’ve been seeing all week continue.

Oil moved even lower as investors shake out risk and traded into 81.14. The next target on crude is 78.50.

GBP/USD broke through major support at 1.7050 during early Asia yesterday and pushed it into the 1.67’s. When you see a break of a huge support level like that its best to sell right along with it as there are typically sell stops in big numbers lined up underneath.

USD/JPY keeps making news lows and is about to knock into 97.70 support.

Bottom line:

Strategy unchanged all week, some days have been more muted than others. Keep buying dollars, selling carry pairs. Stronger sell levels should hold up.

Limited time today but I’ll keep on posting charts for levels. GBP is right below this post for today.