This weak U.S. dollar is actually helping Janet Yellen

By Stephen Guilfoyle | @Sarge986

Good Afternoon,

A couple of items are rattling some cages today. First and foremost among them are the comments made last night by San Francisco Fed President John Williams. He is not a voting member of the committee this year, but Williams is a "much listened to" voice at the Fed. Williams was quite direct in his opinion that the economy is ready higher interest rates. The whammy, however was this: "Broad sets of assets are going to see big movements downward" (as interest rates rise). Yeah, I guess that'll do it.

The "Ugly Stick" rears its head

The "Ugly Stick" was ready at the open, and it was really swinging. Down goes energy (XLE). Down go the financials (XLF). Down go the autos, the miners ... oh, and down go the transports (^DJT). Why? There's enough blame to go around. Chinese PMIs, lowered growth outlook in the Eurozone, panic (at the disco) in Australia, Puerto Rico, and the weakened US dollar.

Weakened U.S. dollar? I thought that was good for U.S. multi-nationals! And it truly would be, if in fact it were sustainable. Truth is that the dollar's recent rolling off the table sets the stage for some shuffling around by some global central banks, including the Fed. You see, this may just give the FOMC the flexibility that it is looking for—with or without an increase in inflation—if indeed its banking masters have given them those much talked about marching orders for June. On top of that—really—how long until the Bank of Japan cries "Uncle"?

Four more things to think about

1) The S&P 500 (^GSPC) found support at 2057 four times in a row this morning. Having come in with a 2055 trading level, I had thought that maybe I had misread the chart—until 2057 gave way and we saw a little bounce at 2055. For this afternoon, 2063 is our target, and 2014, though a long way off, is our rally point.

2) How is safety acting today? Well, Treasurys (^TNX) and the VIX (^VIX) are seeing a boost. However, utilities (XLU), while the best performing sector, are still in the red, and oil (CLM16.NYM) is seeing a little profit-taking after its runabout.

3) Lunch may not be as healthy today, as I had first intended.

4) Is it Tuesday already?