‘Selling May Be Just Getting Started’

“The resounding reversal in the primary trend of the US Dollar is the cornerstone of a bearish litany of technical evidence which resonates with the ominous plangency of 2008, and strongly reinforces our longstanding belief that significant downside remains for risky assets. Importantly, the resurgence of the US Dollar is not simply a function of the Euro’s failings, but rather a global phenomenon which should provide another significant headwind for equities and dollar denominated commodities if historical economic relationships hold. Finally, our analysis of many of the major macro proxies for risk, including Copper, China (H-shares), and the Australian Dollar, suggests that the selling may just be getting started.”   For the full report, click here.