Chasing The Dragon?

"The most probable selling will be triggered by any decline in liquidity. So, the 3rd inflection point, shortly before 5/8/19, is the most likely time frame. - Salmo Trutta 19 Mar 2019, 10:27 AM

The Nattering One muses...  Your uncannily (to others) accurate predictions, are becoming too boring for me to track. LMAO. 

Interesting codicil - after lighting the candle with a -7.5% decline on Monday, yesterday Tues May 7th, the Dragon (China) bounced while all others continued down.

Look at a DAILY chart for all three FX pairs as mentioned in Collateral Damage?   Note in each case the base currency (JPY and USD) started a move on 04/17 which was confirmed in force by 04/24.

Above JPY/CNY showing appreciation.

Above USD/CNY showing appreciation.

Above USD/JPY showing depreciation.

Above note the DXY decline during the period.

The Eurodollar Futures contract price peaked the week of November 6, 2014 at 99.78 implying  a borrowing rate of 100-99.78= 0.22%. Above note the ED contract bottomed the week of December 3rd, 2018 at 97.17 (implied rates rising to 2.83%). The contract price has been rising since, pronounced during the period from April 17th, indicating lower future borrowing costs.

Meanwhile overnight Shibor (unsecured wholesale interbank lending costs in China) declining from April 17th at 2.9980 to 1.3910 on May 7th. 

All of the above translated, since 04/17 and since 04/24 in force, the Dragon has borrowed from Mrs Watanabe to get Washington's.  Coterminous with month end and the May 2nd Fed lowering of IOER from 2.40 to 2.35?

Wend May 8th appears to be a continuation of this sell off for all concerned.  More to come, stay tuned, no flippin.