I’m still trying to connect the dots from this week, but they don’t much connect.
Gold took off for the stratosphere. China, right? I guess.
Bonds yields fell toward range lows even though another $70 bln in supply was issued. As gold soared.I still don’t get it.
“We’re worried about your currency, but hey, how about another helping of those long-bonds over there…”
Still does not make much sense. Oil falls $3.50 on a day gold makes a new trend high?A weekly close below $70.
I could go on and on.Most of the correlations on which we’ve relied in recent months are badly breaking down and traders are trying to come up with new relationships on which to lean. USD/JPY is no longer a risk barometer though it looks as though EUR/USD is plying that ground.
Maybe enlightenment will come with a weekend’s reflection…Hopefully the markets make more sense to all of you than it does to me at the moment.
