Over-committed global gamblers now get to solve this equation for a happy ending:
As expected, the JPY carry trade is RISK OFF...
Yesterday's news that Japan was beginning to taper sent U.S. t-bond yields soaring. Today's news that China is mulling reducing their t-bond holdings added rocket fuel to the fire. Somehow, all of which was seen as "bullish" for bank stocks. Because everyone knows that higher interest rates are "reflationary". As usual, the cart is in front of the horse...
Meanwhile, Emerging Market stocks led by Hong Kong are in blow-off mode. As ZH confirms, overnight the all-time rally record was broken...
Bitcoin has tested its 50 day multiple times in the past 24 hours, so it's only a matter of time before it gives way...
In the meantime, Ethereum is out-performing
Any questions?
The last time the fake reflation trade was this parabolic was last March:
The last time the S&P 500 was this overbought was...
...last March? Not quite as overbought as now:
Correct answer: 1987
