Currencies are at risk.
Commodities
Rice is up 1.43% since our “Rice is the answer” newsletter on August 28th and continues to outperform most commodities. Once that breaks, we might see a nice topping out of commodities. Agricultural commodities are strong as well.
Remember, trading one asset class is trading blind.
Currencies:
US Dollar is ripping to its highest level in 20 years.
When you have a relatively strong economy and a central bank that is radically raising interest rates to prevent inflation your currency is going to go up.
Major currencies are breaking: JPY and GBP are falling to record lows. EURUSD at .97
No signs of trend deterioration for the US Dollar. Overextended yes, but the trend is still intact. EM’s debt crisis will be real
Short trash EM and DM currencies against the dollar. Below are a few major pairs to monitor.
