So Goes the Yen, So Goes the Markets

We have been harping on this for days, but we cannot stress enough that you should watch currency markets for clues as to where the stock makets is headed. Note the rise in both the Yen and the Euro overnight coinciding with a 5% crash in the Shanghai Composite index:

Euro FX Futures

Euro FX Futures

Yen FX Futures

Yen FX Futures

This coincides perfectly with the decline in stocks…

ESZ14… and the rally in US Treasuries:

ZNH15

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