OnIslandTrader's Blog : Quick recap of last week

The calm before the storm continues. Numerous commentators noted the dollar / stock correlation this week and all were cautious of a sharp short-covering induced rally in the dollar. I agree it's in the cards, but knowing when it's going to happen is the challenge. For now, those short the dollar are sitting comfortably and aren't scrambling over each other to cover their positions on corrections. We will likely see increased volatility in the dollar before that happens and although we've begun to see some sharper moves, I can see us having one more drop in the dollar / pop in risk assets before the ultimate correction.

As with everything in the markets though, all it takes is a catalyst and things can turn on a dime. Stay hedged, stay nimble, and trade akamai.