CHART OF THE DAY: Defensives Don't Work In #Quad2

Let’s start with what was potentially a capitulatory move in the Global Currency market:

1. US Dollar Index was +0.76% on the week signaling immediate-term TRADE #overbought at a big lower-cycle-high
2. EUR/USD was -1.1% signaling immediate-term TRADE #oversold (on Thursday) and remains Neutral TREND
3. Japanese Yen was -0.3% vs. USD and remains Bearish vs. USD on both our TRADE and TREND durations
4. GBP/USD was -1.0% breaking down to Bearish @Hedgeye TREND again (but also signaled #oversold)
5. Chinese Yuan was +0.3% vs. USD last week and remains Bullish TRADE and TREND

Do the Chinese understand that one of the ways to tone down their nasty #Quad3 Stagflation is to have a stronger currency that supports the purchasing power of The People?

Do the “charts” people who chased USD on Thursday know that Long USD is the most consensus net LONG position in Macro next to Long Cotton (CFTC futures & options positioning)? Who knows what our competition really knows.

If we’re still competing with people who haven’t been long Commodities, as an Asset Class, that’s pretty easy to win against.