The big story yesterday was a graph at ZeroHedge showing that credit applications from businesses were rejected at a frightening clip last month. At the same time, revolving credit shrank at the fastest pace since 2010. A credit collapse in the making? Could be. The stock market stupidly took the news in stride with a moderate rally. But T-Bonds soared and gold weakened, suggesting that at least some investors understood the implications of the report from the National Association of Credit Managers. The dollar fell as well, but anyone who joined in the selling must think that Europe’s economy is about to come roaring back. Any further, significant dollar weakness is not possible, and traders are therefore strongly advised to position themselves against dollar-dumping fools.
