Weekly Market Pulse: Be Careful What You Wish For
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Be careful what you wish for lest it come true! Various of Aesop's Fables
Shinzo Abe was elected to a second term as Japanese Prime Minister in 2012
and la...
2021-12-29
Yuan Tracks Former Resistance, Volmageddon When?
Sometimes this happens: a security breaks a trendline, but then keeps following it for a time. USDCNY is moving in a bearish direction, but I still expect a reversal because the Chinese economy cannot handle a strong yuan.
For myself, I closed my long USDCNH futures about a week ago and bought FXI puts instead. FXI has drifted below support. I plan on going back into CNH, but they may hold off on letting it fall until after the Olympics. I expect yuan depreciation will be part of a market panic though, because I expect a new leg higher in DXY when that unfolds.
BTC is also retesting a minor short-term line.
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