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转下周一写的:. m/ E% l& U4 P; b" R# k, y. t
The most significant news item last week didn't seem to be earnings or economic data, but rather a report by Bloomberg on Monday that Japanese housewives – the largest group of individual investors in Japan – had their largest net short position in the Japanese Yen since last fall before a month long rally in the Yen. Therefore, it should not be a surprise that the moment this news was reported marked a low for the Yen… & D# ?0 B8 G. o* ^5 [" Z
4 b3 Q0 T8 U8 j' I, {4 _ M$ kThe chart below shows the Aussie sold off last week from an overbought condition against the U.S. Dollar, but the recent upward channel remains. Therefore, we have to view this as nothing more than a short-term bounce for the Dollar until the trend is broken and, more likely, we need to be prepared to trade with the trend. This also means we will need to cover Energy and Material shorts. I see political reasons for U.S. Dollar weakness against currencies such as Australia’s, but primarily view the Aussie’s rally as investors buying the inflation trade. However, the number one leading indicator we know for inflation is the M3 money supply and the M3 components continue to contract, which means the Fed’s expansion of the M1 money supply is not expanding the total money supply. Therefore, once the trend line on the next chart is broken, it may be time to short Energy and Materials.
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