Again….you generally need to be “ahead of these moves” in order to take advantage ( note yesterdays post- please scroll down ).
Gold, & Silver Jump As Citi Sells All USD Positions Fearing “Squeeze”
I envision a time ( in the not so distant future ) when “all things American” ( USD, Stocks and most certainly the bonds ) are sold.
I’m sure you’ve noticed the correlation of USD strength = U.S Equities strength so…..one would have to imagine the complete and total “inverse relationship” as well right?
Or they just all keep going up forever. RIght.
Little chance of that.
Other than the few short USD positions already in play I’m more or less “cash ready” for the large positions “long JPY” ( against most every other currency on the planet ) kicking in here soon.
No shorts in SP 500 as of yet.
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Excuse my ignorance but wasn’t the correlation you were mentioning months ago, buy USD and sell equities (the repatriation trade)…if indeed equities do tank, isn’t the flow then into Yen and USD as the major money these equities are priced in is Yen and US Dollar?
…The charts to me suggest the USD is indeed overbought in the short term, but it has cruised past major levels across the board signalling to me we might be getting ready for the next leg up after a correction… perhaps when we do get that next push up in USD the selling of stocks would be the driving force…maybe not but just curious on your thoughts
Anyways hope all is well, I too have been sitting in cash as the markets are all over the place…
Hey ROb…ya this relationship has had me flip flop quite a bit over the past months but….
As we can clearly see here…..the repatriation will be to Yen as USD is clearly moving higher along side equites here in lock step fashion so.
I’m of the mindset that as Equities fall – so will USD….at least for this next leg down. If / when it ever comes.