Hey you only live once right, and in nailing the Nikkei a couple of weeks ago….we might as well just go for broke here. I’ve got absolutely nothing to lose anyway.
The Top Is In!
Peaking on Friday, and now continuing on its way lower U.S Equities will now “finally” roll on over.
With the momo names in tech “quietly leading the way” over the past few weeks, and the Bank Index $BKX flopping around, we’ve now seen what we might call ” final capitulation” in the U.S Dollar to top things off.
A strong U.S Dollar bounce on “repatriation” will only be fueled “more so” by the selling of equities “also priced in USD”.
The money has to go somewhere right? So when you sell something priced in U.S Dollars that money then goes back into your trade account / bank account and BOOM! USD cash position moves higher and higher.
The coming move in USD should put considerable pressure on commodity prices as “they too” shall fall.
And U.S Bonds? Would you seriously want to own a U.S Bond?
We continue to frame trades with a “risk off mentality” including long USD positions as well “waiting in the wings” for several long JPY positions as well.
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