It seems that the market is not positioned properly for whats coming. A mini-reflation. A scenario where BONDS grind lower (rates grind higher) and we see RISK catch a BID. Traders will look at the CARRY trade as a viable option and when that coincides with the charts, we can get some potent moves.


We like how we are positioned in EURJPY and EURCHF. We also like CADJPY (shown above), ZARJPY and AUDJPY as expressions of the CARRY TRADE.

These are moves that we suspect will TREND HIGHER. It feels like the market is in CHASE MODE, so we need to be clever about our entries.