Archived IMT (2009.03.20)

Breaking news that a US amphibious vessel collided in the Strait of Hormuz today is unlikely to have been a result ofany attacks, but oil's prolonged footting above $50.80 should continue to draw momentum traders into the $53 level and beyond. In a day devoid of economic data at a time when hefty risk appetite is increasingly sticky, momentum is unlikely to turn higher in stocks and against commodities without the emergence of any significant catalyst. Long USDCAD positions as a defensive startegy against any down turn in equities (against long EURUSD and AUDUSD) are suggested.