Submitted by Michael Shedlock via MishTalk.com,
As we head into 2017, how should one be positioned? Let’s explore that idea with a trio of contrarian indicators.
US Treasuries?
The one idea most widely agreed upon is that Trump will spur inflation and treasuries are the last place to be.
This headline says it all.
The other day this was in @USATODAY pic.twitter.com/lgzCyW9BLM
The momentum driven post election rally has ended. Next up is the US Dollar driven collapse in the markets.
Copper called this weeks ago as we noted before. No one listed. It’s now down nearly 10% from its peak and clinging to support for dear life.
Stocks are now following. They’ve taken out support. The bulls will claim we’re going to hold at 2,200, but the reality is we’re going to unwind the entire election move and then some. 2,050 beckons.
Indeed, stocks will be lucky if they don’t crash like they did in August ’15 based on what China’s doing with the Yuan.
Submitted by Osama Rizvi via OilPrice.com,
If 2016 taught traders anything, it was that old norms were useless and the concept of the market as a discounting mechanism (as opposed to an algo-driven headline-reacting maelstrom of manias) is lost forever. This flipping of reality is nowhere more evident in the topsy turvy shifts in risk expectations across global asset classes - where 'safe' is now riskiest and 'riskiest' is now safe.
In the latest macro update from JPM's Adam Crisafuli, the strategist writes that the Trumpflation rally which more than doubled the market's YTD gains since the Trump election, has gotten ahead of itself and that "it seems like a lot of headwinds that have been accumulating below the surface for weeks are quietly moving to the fore."
Here are the details: