Here a short but sweet BarCap report from Friday, aligning some dots to arrive at a deflationary picture with falling commodity prices, rising DX and rising fixed income rates.
Its dangerous this. And especially dangerous given the equity market technical weakness. No equity chart but the distribution in price and internal tech would compliment well!
Of course policy maker ‘action’ could produce a year end reprieve “rabbit from the hat”. Some ‘jaw boning’ later today by Fed members.
Also here a comprehensive commodities report from the team at Barcap.
If you are a commodity bull look away. Its bearish stuff i’m afraid but this seems perfectly correct to my mind given all the correlated price moves of late.
Tech and fundamentals are starting to align here. Multi market wise, bearishly so.
Rich
p.s. this perspective would throw some light on the bullion market’s bear continuation, as Faber did tell us.
Why has gold been so weak? Perhaps now we are starting to see the real answer.