Archived IMT (2009.05.13)

Sterling bounces from session lows vs USD despite stocks prolonged sell-off, but remains weighed vs JPY. Oil drops off its $59.80 session high despite unexpected cuts in inventories. Yen strength still prevails. A negative close today would make 3-consecutive daily losses, the first of pattern since end of March. Reiterating the call for bearish financial ETFs such as FAZ and SKF. W-formation in Daily NZDJPY continues to form, targeting 56.50,followed by 55.80. Upside capped at 58.50.