Business

“When the Mexican peso gets a cold, Laredo sneezes,” Les Norton, head of the Downtown Merchants Association says.

Despite the fact that Banxico managed to take MXN shorts out into the alley and execute them earlier this month in an epic “franc moment,” the trend, so to speak, is not your friend here.

Mexico’s currency has taken a dramatic hit from the slump in crude. Like other EM FX pairs, the USDMXN hasn’t been the place to be over the past year (again, recent weakness notwithstanding).

Submitted by Nick Giambruno via InternationalMan.com,

No matter what ailed you, the doctor had one cure: attaching leeches to your body.

In the Middle Ages, doctors used leeches to treat everything from headaches to ear infections, asthma, smallpox, the plague, and hundreds of other diseases. If there was something wrong with you, leeches were the solution. If that didn’t work, the answer was more leeches.

Another crazy day in the markets...

While stocks dropped and popped on the day... with a panic-buying scramble into the close to get Nasdaq unch...

On SPY's lowest volume day of 2016

Given the vicious downward spiral of competitive devaluation that is washing around the world's economic bathtub, it appears - just as we saw during The Great Depression - that currency wars have given way to mal-investment-fueled protectionism as US launches the first missile in the trade wars with a massive 266% tariff on imports of cold-rolled steel. “There’ll be a short-term benefit,“ said John Packard of Steel Market Update. ”However, in the long run, the U.S.

With GAAP valuations topping 22x, macro data weakening everywhere, and US equities at their most overbought since 2004, what could possibly go wrong?

The McClellan Oscillator has reached over 90 which represents a highly overbought level. However, more amazingly, if you look at it through the lens of a monthly chart there is no evidence of any correction ever having taken place in 2016. No red whatsoever

Source: NorthmanTrader.com