John Carter Futures Review: VIX, Bonds, Dollar, Yen, Commodities

In today's futures update, we start with the VIX which is positioning for a squeeze higher, a troubling sign for equities. The Yen has been getting hammered, and over the last few years that would have been very bullish for stocks, but as of late it hasn't meant much as stocks have pretty much traded sideways. Bonds got hit hard over the last couple weeks as well, which also should have been bullish for stocks. We're anticipating a potential sell off given these diverging signals. The dollar has been extended on a daily and weekly basis, but on a monthly basis we haven't had a squeeze for 12 years, so if it triggers to the upside that would signal additional warnings for equities. The Euro is positioned for a bounce after it's recent sell off in light of dollar strength, but not necessarily a meaningful move if it does materialize. With the Scotland vote out of the way, the British pound hasn't bounced as much as people may have thought. Gold is in big trouble, as the weekly squeeze triggered to the downside, and as we look at potentially new lows silver appears to be an attractive short candidate. Crude also appears weak and heading for more downside as the dollar strengthens, and grains maintain weakness, while live cattle is concurrently strong.