Catch The Bounce – If Any

We are clearly (well) on the other side of the mountain now – as the simple correlation of the U.S dollar and stocks continues to trade lock step. Huge inflows of cash from Asia ( brought on by Japan’s liquidity pump) surged into U.S equities in this “last gasp” for yield, and had to be converted to U.S dollars on purchase ( through with ever banks and brokers) – so…you got this strange situation where U.S dollar and U.S equities went up – hard.

We now see the reversal of this market dynamic – coupled with talk of “tapering” and sprinkled with some bullshit from Turkey. Throw in the fact that the global “powers that be” are more than uncertain that Japan is gonna get it’s house in order – and of course the “disaster” we know as Europe….and the inevitable “rising of interest rates”.

Ben’s 85 billion per month is literally a drop in the bucket in comparison to the larger macro forces acting upon markets.

This “might” bounce – and even bounce fast n hard ( as to fleece a larger majority) but that’ll be that.

Come Sept when this thing is deep in the toilet , you’ll get QE5 -which will provide a “lower high” – and again – that will be that.

I’m playing long NZD/USD for fun here  – as a couple days upward move in USD (oddly larger move higher in NZD) should be good for some beer money. Otherwise…….same ol same ol – I’ll watch for USD to peter out quickly – and hit the long JPY’s again for the “real leg down”.