The dollar strengthened dramatically in an apparent short squeeze that triggered liquidation across most asset types. The dollar has emerged strongly from a formidable bottom on the charts, as the first response of dollar carry traders to double down and increase their bets back in December has come back to bite them and the markets hard. All markets except Treasuries are now showing signs of forced liquidation, or in the dollar’s case, forced short covering. The Treasuries, perversely, are getting the benefit but underlying demand factors for Treasuries are weakening. This makes the rally in Treasuries dangerous. It promises even greater market disruptions down the road. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information.
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