Deflation is the Operative Word
From the comments we got it appears we got your attention yesterday. As we mentioned last Friday the China ETF “FXI” remains one of our key indicators. It broke down by closing under 41.03 that day, bounced up yesterday, now a close under 39.36 will seal its fate.
Following up from our comments earlier this summer, a stronger dollar will be the beneficiary of falling commodity prices. Stocks are overpriced on a number of measures. There is no reason to own stocks now in our opinion. Even the “Green” stocks will be pulled down by oil deflation.
We added to our short stock and commodity positions yesterday on the bounce.
Later this week we will list our market positions.
7:56 AM CDT