LIGHT CALENDAR - Everything that happened on Monday, seemed to happen in the opening hours of the day, with the market content on trading in some tight consolidation for the remainder of the day. I think the very light Monday economic calendar had a lot to do with this, as the market was probably content on deferring to a bit of a break following some intense volatility in recent weeks. The Euro's ability to stay supported above 1.0800 was impressive, though the market continues to trade with a heavy tone and is expected to break down towards the 12 year low from March at 1.0462. Meanwhile, GOLD was happy to sit back and digest the early Monday collapse, with the market hovering above 1100. I had said that I liked the idea of buying GOLD into another dip, but have not yet pulled the trigger. Perhaps one more drop and I will go ahead and give it a shot.
ELEVATED EQUITIES - Looking ahead, Tuesday is going to be another quiet economic calendar day, with no data out of the US. Things will pick up again from Wednesday into the end of the week, with all of the calendar events stacked in the middle and latter half of the week. So in the interim, we could see more consolidation trade on Tuesday. The only position I have on at the moment is an out of the money equity short. The ability for this market to continue to surge to record highs has been unreal in my view, and it looks like the market could be on course to break to yet another record high above the May high. Still, I believe any upside should be limited and a lot of this latest price action is more a function of extremely low volumes than anything else. I think the equity market is still ignoring the reality of a Fed liftoff in 2015 and once this starts to sink in a little more, look out below.