The Yen continues to strengthen against the USD
Though I have been pretty accurate in this "smart money" trade, the upcoming volatility in currencies will become difficult for me to grasp. Some quick points:
- The strength in the Yen is not just a reflection of the weakness in the Dollar, but also the continued unwinding of the Yen Carry Trade. This is significant, because if the US economy is indeed recovering -- as what the mainstream "experts" have been telling us (which we don't buy into) -- why are the currency markets pricing in a very different picture?
- There's a very clear disconnect in stocks, Gold, commodities, currencies, and bonds: Gold, commodities, and bonds are saying inflation, while currencies are saying "screw you recovery!" I fear the recovery story is going to end up in tears.
- We maintain our view that the Dow will close below 8,000 by the end of this year [1].
- Don't be greedy with the Yen. Trail stop.
-----//-----
Reference:
Related posts:
0 comments:
Post a Comment