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There was just a commodities tsunami this morning

Whooo doggie! What happened this morning seemed like a bulldozer running through a living room. The sharp moves for the U.S. dollar and its mirror image in commodity markets were simply jaw-dropping.

Stephen Guilfoyle

By Stephen Guilfoyle | @Sarge986

Good Afternoon,

Whooo doggie! What happened this morning seemed like a bulldozer running through a living room. The sharp moves for the U.S. dollar (^USDOLLAR) and its mirror image in commodity markets were simply jaw-dropping.

This morning we all saw it: crude (CLM16.NYM) was strong, gold was strong (really strong) (GCM16.CMX), and everything else was pretty strong too. Not the dollar though.

That however, changed. The dollar bottomed in the 93.90s and quickly soared all the way to 94.75 before cooling off. The Euro (EURUSD=X) and the Pound (GBPUSD=X) both rallied hard and then sold off harder.

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Helicopter money from Mario? Not really. Future rate hikes here? Doubtful, if you saw the Philly Fed. Maybe just not anticipating any easing by the Fed is the new tightening—or simply divergent enough—on this brave new planet we call Earth.

The rapid rise of the dollar this morning forced all of your favorite commodities lower in a flash. Everything is pretty much back where it was around midnight, but—wow—that was a heart attack a minute while it lasted. You wonder why I eat right and exercise.

Four things to watch this afternoon

1) Where's this morning's pivot point? Why, it's 2099 for the S&P 500—yet again. Bored? No, when something works over and over, you say "thank you."

2) Utilities (XLU) and staples (XLP) are being taken to the woodshed. Healthcare (XLV) and discretionary names (XLY) are leading the winners. We have a "Tale of Two Transports" being told today. The railroads are for the most part having a nice day (UNP up 5%), while the airlines are clearly having a poor one. (UAL is down 11%.)

3) All of this ultimately sideways turmoil has put a bid under the VIX (^VIX), but there is no flight to safety, as Treasurys (^TNX) are as soft as those utilities that I just mentioned. Gold is well ... gold.

4) Advancing volume at the NYSE is higher than is declining volume, but this is as close to a fifty-fifty split as you will ever see.