These Huge Market Distortions Indicate Vulnerabilities (and Opportunities) The last time we had a divergence this pronounced was in 2000, right before the Nasdaq dropped 83% from its highs.
29 January 2024 - Thoughts on the Market Today is a bit unusual since it has been one of the few days this year when the New York market has actually been pushing dollar yen lower.
24 January 2024 - Thoughts on the Market In my last write-up, I wrote that I expected the dollar to likely come under a renewed attack once the recent corrective cycle was complete. My hunch is that the renewed attack is very imminent. I have sold dollar Swiss and dollar yen today, and I also sold a basket
15 January 2024 - Thoughts on the Market It has been an interesting start to the year, with lots of seemingly stochastic price action in multiple markets. Let’s try to make sense of what has occurred so far, and let’s try to figure out where we are heading from here. I have always felt that it
2 January 2024 - Thoughts on the Market In my last several write-ups, I discussed my view that dollar yen had finally started its long-awaited powerful reversal from its multi-year highs around 151.90. In almost textbook fashion, the dollar staged a sharp, but brief, reversal from 141.50 back to 145.00, before then resuming its downtrend.
7 December 2023 - Thoughts on the Market Up the Stairs, Down the Elevator – The Reversal in Dollar Yen Has Started This has been a strange year in the markets, with many securities, currencies, and commodities having been driven way beyond rational valuation levels due to the building up of massive speculative exposures. Eventually these distortions will get
4 December 2023 - Thoughts on the Market Here is another brief update before a longer write-up in several weeks. In my analysis of November 19, 2023, I had written that we were likely in the early stages of a major, new rally in gold. The recent price action confirms this view, with gold having exploded higher from