Issac Newton and the FX market/Bullish sentiment back to extreme/Other notable stuff

Was it Issac Newton who said "for every reaction there is an equal and opposite reaction"? I believe so and that is what we are seeing in the currency market in that if foreigners are going to get hit by our tariffs on their imports, their weaker currency is in the process of offsetting any potential pain for them. The Chinese offshore yuan in particular is at the weakest level vs the US dollar since late July.

The dollar rally though is getting stretched short term as the 14 day Relative Strength Index in the DXY is at the highest level since September 2023 at 75. In turn, gold is now the most oversold since October 2023 which we remain bullish and long of. 

DXY

Gold

Post election, bullish stock market sentiment according to Investors Intelligence is back to extreme with the Bull/Bear exceeding 40. Bulls rose to 60.3 from 56.7, a level rarely seen while Bears fell to 19 from 21.6. The Bulls are at the highest level since July 2024 while Bears are at the least since August 2024. This follows the Citi/Panic Euphoria index that got more Euphoric w/o/w. Also in today's AAII, Bulls rose by 8.3 pts to 49.8, the highest  since mid September when it was above 50. All of them though went to the Neutral side as Bears ticked up by .7 pts to 28.3, though the spread between the two is also high. The CNN Fear/Greed index at 67 is right in the middle of the 'Greed' category but not yet near 'Extreme Greed.'