The Defaltion Twins are still on course and seem to confirm the topping pattern we observe in the other Markets.
why are the twins important...
- If Inflation, as the consensus believes, is the main risk (inflation= rising asset markets) then the 10yr TSY yield has to go up, but it doesn't....
- If China carries the world then the FXI (CHINA ETF) has to lead the S&P 500 and confirm all the new highs, but it doesn't...
More evidence can also be found with the BALTIC DRY Index that still seem to have missed the news that the worst is behind us.....
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