CHART OF THE DAY: Do You Chase Here?

Depending on how closely you’re following our #process, The Question: “Do You Chase Here?” could mean a lot of things: 

1. Do you press the Chinese Stock market (FXI) short post yesterday’s fresh YTD lows?
2. Do you chase the Long Italian Bonds move at this morning’s YTD highs?
3. Do you chase US Consumer Discretionary (XLY) stocks post a +1.9% day to +5.3% YTD? 

“Believe me”, that last question and really most of the questions in my inbox relate to chasing the move in US Equities. Not a ton of our clients loved our LONG European Sovereign Bonds (Italian Bonds) vs. SHORT European Equities call on #EuropeSlowing. 

On that score, before I come back to the US question, Eurozone inflation (CPI) slowed to +1.3% year-over-year in MAR vs. 1.4% in FEB. As you can see in today’s Chart of The Day, European Bond Yields peaked when European late cycle inflation peaked (i.e. last year!). 

But, again, who wants to talk about the whole Global Macro picture when Macro Tourists are staring at one picture (the Dow is above the 50-day moving monkey, bro!)?