In addition to the notable Apple weakness everyone is looking at, we are finally seeing the Japanese Yen bounce after getting obliterated of late. The Yen is usually inverse correlated to global risk appetite. But that correlation holds true more so in corrective or indecisive markets, rather than trending bullish ones.
As a result, if equities can resist a sharp correction even as Apple flops and the Yen continues to bounce ti will be another check the bull thesis column.
___________________________________
Chess
Thanks for yet another awesome post. I have been stalking the YCS but it looks extended to the point that it could be the most crowded trade on planet earth. If you had to guess where do you think the mean reversion bounce on the FXY goes (20 day MA maybe I don’t know which is why I am asking you)? Many thanks for your awesome work and help.
Thanks ctb–Consider a run to $113 on FXY and then a pullback perhaps setting up an inverse head and shoulders bottom.
Chess
Many thanks