CHINA! Two-day move, WHAMO!
Just straight to the upside; you got a +3.4% two-day move. So instead of making lower-highs, it’s making higher-highs.
As a friendly reminder, if you go back to where that red arrow started, that’s where the Quad 4'ing of it all happened last year. That came and went, then where that green arrow starts back in June, Hedgeye Nation went bullish on Commodities, EM, China, etc.
So a huge return; there have been plenty of head fakes and opportunities to get off the bus.
If you knew that the China CPI number was going to be “weaker” overnight and you sold Chinese stocks short ahead of that, you would’ve got your face ripped off.
So be careful, understand that the signal matters more than anything else.