The most important chart right now for gamblers is the chart showing t-bonds versus stocks. Normally they go in opposite directions, but for several months they've both been trending higher as bond yields exhibit economic deflation. Bonds are saying the economy is rolling over, while stocks are saying hang on for the imaginary tax cut. Only one will be right in the end...
The connection between bonds and stocks is via the dollar. A lower bond yield (higher price) weakens the dollar and removes a critical source of stock market liquidity.
Bonds are on the verge of breaking through the election gap.
Speaking of carry trades, the rally in Euro and Yen has monkey hammered the global carry trades. And yet, so far EM currencies have held up. Again, only one can be right in the end:
Of course any rollover in EM currencies will also take down the S&P 500:
What is the connection between EM Currencies and the S&P 500? U.S. listed Chinese internet stocks, which are the largest holdings in the EM stock ETF, and among major hedge funds:
Speaking of currencies, Bitcoin is right at the edge of violating the prior breakout level, $4500
Bitstamp, $USD:
