Positioning vs Reality

We are poised to enter one of those potentially confusing periods of Positioning vs Reality. The reality is that yes, the world is in an upswing higher, and was already before the alleged Trump Trades were put on:

img_4452
Inflation is back, baby, and you better believe it – with China’s Producer Price Index roaring up to 5 year highs at 5.5%, having been at -5% just 12 months ago….And yes, the rate of change in this inflation in China is the highest it has ever been:

img_4453

But then oh dear, what do we have here? Record net shorts on the US 10year:

img_4454

And the shortest Yen positions in a couple of years:

img_4455
Uh oh. Mind the gap in USD/JPY?

Leave a Reply

Your email address will not be published. Required fields are marked *