On the edge of Chaos and Pain, sorry to disturb the EVERYWHERE Permabulls, but currently all previously working correlations start to indicate a major movement. Especially in the 5 Trill. daily volume FOREX market. Among all correlations the best working were JPYUSD & Ni225 as well as JPYUSD and XAUUSD . As well as a few others like S&P with 10 yield. From the current COT data we are at the most extreme positioning ever!!!! Concerning JPYUSD AND XAUUSD. We need to assume a major depreciation of Yen since hedging pressure of non commercials is at levels comparable to 2012. In addition (blue) the 4 biggest Dealers are at extremest level since GFC. Similar the positioning of GC1! !!!! There is a HIGH risk to see the chance on the upside concerning Gold !!! Rather expect a major downward movement. Whatever the initiator of that movement will be, it can be dramatic.
