The action in equities is ugly this afternoon, as bulls did not want to see distribution day after last Thursday’s upside reversal.
I view the Japanese Yen as the wild card, or “X-factor” here, given the inverse relationship between stocks and the Yen. We looked at the Yen in recent weeks as being a snapback rally candidate.
And that is exactly what we are seeing here, coinciding with weakness in equities.
Should the Yen rally up to its ETF’s 50-day moving average, a real possibility, I expect equites to come under more pressure.
I am positioned for just that.
Into the final hour, I took profits for big wins in LAKE and JO.
See you for the recap.
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