Clarity After The Smoke Clears

The smoke hasn’t cleared. There is no clarity so…….grab a breath of “reasonably fresh air” if you can – and prepare to wait this out a little longer.

Correlations did indeed make a “twist” in yesterday’s action as USD popped (as expected) – with equities moving decidedly lower….and gold – poor, poor gold more or less melted away.  I assume that now is the time ( all be it like….at least a week too late) where hopeful bulls may finally be putting down the rose colored glasses a second or two (and seriously taking a look at their screens) and as well hungry bears – excited and over zealous are jumping into positions a touch “too confident”.

Currency wise – risk related countries continue to get absolutely pounded with really no end in sight confirming (and further signaling) that the big money ( and Kong ) have been more or less “short risk” for a considerable time now – while the circus in U.S equities continues to play out.

I need to watch USD here ( as it is still the world’s reserve currency – and the most widely held ) to see it max out here in coming days – and continue it’s downward slide for what I expect to be the “larger leg” in it’s near term demise.

It remains to be seen weather or not USD and U.S equities will regain the previous correlation (both moving in the same direction) as I expect they will – as all things U.S are likely sold.