Macro Report: The Collapse
I have been explaining the extreme imbalance taking place in Japan and HOW it is reverberating across global markets. If you plan to be actively taking risks in Q1, the changes in Japan will impact you.
If you are not up to speed on the context, you should read the in-depth reports as well as the connected videos I recorded. This is the framework for flows moving forward.
If you were a paid subscriber, then you received the message from me explaining the tangible implication, which was EURJPY rallying. This is a trade that is paying while equity rotations continue to chop and crude is figuring out which direction it’s going to take next.
What you need to realize is that when we have currency pairs like AUDJPY and MXNJPY rallying, it is a massive signal about risk-on behavior:
This is why, when we were at the lows in equities earlier this week, I published the equity strategy report explaining that I remained bullish (again, all of the time-sensitive information is sent out exclusively for paid subscribers)
The FX moves are one of the representations we see with liquidity in the system, which is why these pairs against the Yen were leading ES futures multiple times in the session over the last 48 hours.
All of these moves are setting the stage for something much MUCH bigger, though.
The Larger Misconception:
Keep reading with a 7-day free trial
Subscribe to Capital Flows to keep reading this post and get 7 days of free access to the full post archives.