A Monday Dozen [CHART PACK]


Technical analysis reflects the voice of the entire marketplace and, therefore, does pick up unusual behavior. By definition, anything that creates a new chart pattern is something unusual. It is very important for me to study the details of price action to see if I can observe something about how everybody is voting. Studying the charts is absolutely critical and alerts me to existing disequilibria and potential changes. ~ Bruce Kovner

Good morning!

In this week’s Monday Dozen we take a look at anxious markets and discuss the fuss over the inverted yield curve, plus we check in on liquidity, sentiment, and relative valuations and end with a sector that has all three going for it. 

1)  In last week’s Musings I shared a compilation of recent front-page newspaper headlines warning about an imminent recession, a painful bear market, and general hysteria over an inverted yield curve. My weekly copy of The Economist arrived yesterday in the mail with the following cover. I’m not aware of any significant market top in history that was so widely predicted by the mainstream media. #sentimentcheck



2) This great chart from Sentiment Trader shows just how loud the recession calls have become.

3) I wrote earlier in the year about why the “recession signaling” ability of the yield curve may not be as reliable this time around (link here). Regardless, an inversion of the 2-10 yield curve precedes a top in the SPX by an average of 7.3 months where the SPX averages a gain of 9.52%. It’s important to keep in mind that in markets the more something is closely observed the more likely it is to be altered in the process and/or already priced in.

4) Rather than being prescient in their recession calls, maybe the media is late? NDR’s Global Recession Probability Model has been signaling a high likelihood of a global recession since the middle of last year when much of the world entered a downturn. Global ex. US recessions last 14-months on average which would put the current global slowdown ending sometime in the next few months (chart via NDR and CMG Wealth).

5) BofAML’s Composite Recession model is still showing a very low likelihood of a US recession in the near-term. 



6) BofAML’s US Consumer Confidence Indicator shows that Trump’s trade war hasn’t been helping with the overall mood of things. But it looks like the latest market vol is getting to the Tweeter in Chief and the odds are rising that he’s going to fold his hand.

7) Liquidity is still very loose… Both Kansas and St. Louis Fed show little financial stress in the system, the 13-week rate-of-change in BAA bond yields is at its lowest point since the GFC (which make stocks more attractive on a relative basis), and BAA/BBB bond spreads are somewhat elevated but still below levels that should cause concern.

8) The MO Composite Sentiment and Positioning Index is now in buy territory (below the horizontal red line). I’d like to see it go negative but as of now the conditions have been met to switch my bias from bearish to bullish/neutral. My base case is that we see a rise from here followed by more sideways chop and vol but the larger macro conditions look to be setting up for another major global rally starting before year’s end. We’re just waiting on a catalyst (European stimulus, Chinese Stimulus, uber dovish Fed etc…).


9) Relative sector valuations show that materials and energy are trading on the cheap (chart via BoAML).

10) Speaking of energy, according to Sentiment Trader “The oil services fund is showing a pretty drastic drop in optimism over the past 2 weeks. According to the Backtest Engine, it’s only been this bad twice before.”

11) Jesse Stine shared the following in his latest market letter (link here),“Oil servicers nailed it to the penny on Thursday.  Sure smells like a cycle low is close.” I agree. 


12) Also from that same letter and via Sentiment Trader is this great chart showing the difference between Hedger positioning in copper relative to gold as a % of opening interest. A reversal in the key copper/gold ratio would spell trouble for long bonds. To understand why you can read my writeup on the hierarchy of markets here. 





A Monday Dozen [CHART PACK]


The nature of investing is that a very small percentage of the people take money, essentially, in that poker game, away from other people who don’t know when prices go up whether that means it’s a good investment or if it’s a more expensive investment.  Too many investors are reactive decision-makers. If something has gone up, they say, ‘Ah, that’s a good investment.’ They don’t say, ‘That’s more expensive. ~ Ray Dalio

Good morning!

In this week’s Monday Dozen we take a look collapsing manufacturing around the world, yield curves signaling higher volatility in equities ahead, the makings of a currency war, and a popped parabolic top in a major EM market along with much much more…

1) Global PMI and New Orders are both in contractionary territory for the first time this cycle (chart via MS).

2) Manufacturing is a small part of the US economy but it’s the making of physical goods that drives the business cycle. If the manufacturing ISM keeps trending lower at this pace, it’ll end up in negative territory before the year is out and consumer confidence will then likely follow suit.

3) Keep an eye on this one. The S&P 500 may be forming a textbook Broadening Top. My baseline is increased volatility and sideways action with a downside bias over the next month.

4) Is the yield curve signaling higher equity volatility ahead? Again, my money is yes… (chart via MS)

5) This 20-year seasonality chart of the S&P 500 shows that August and September have a tendency to be rough months for the market.

6) Asset manager’s equity exposure through S&P e-minis hit post-crisis highs recently (chart via BoAML).

7) First trade wars now currency wars? The USDCNY is moving above the critical spot 7-level. The Chinese yuan is now trading at its lowest point against the dollar in over a decade. Expect many a tweets about the dollar from the White House in the coming weeks.

8) EURUSD is also at a significant level. The euro came down and bounced off its downward sloping support line last week (chart is a weekly).

9) The EUR-short-funded carry trade is at risk of unwinding should volatility pick up. Positioning and risk-reversals are still pointing to a move higher in EURUSD.

10) NDR’s Recession Watch Indicator is ticking up but still well below levels that have indicated an impending recession in the past.

11) And despite the contraction in global growth and rising geopolitical uncertainty, credit conditions in the US remain very loose (chart via NDR).

12) “Three reasons why #Nifty 50 $Nifty could enter bear market phase #India

  1. Mkt. challenging 16-year parabolic advance – potential targets 9120 & 6420
  2. Possible 19-mo. right-angled broadening pattern
  3. Mar-Jun ’19 surge now completely reversed” ~ Chart and text via @PeterLBrandt.

A Monday Dozen [CHART PACK]


Charting is a little like surfing. You don’t have to know a lot about the physics of the tides, resonance, and fluid dynamics in order to catch a good wave. You just have to be able to sense when it’s happening and then have the drive to act at the right time.   ~ Ed Seykota

Good morning!

In this week’s Monday Dozen we take a look at CROWDED trades, some of the worst earnings guidance in a decade, the US joining in on the manufacturing recession and more…

1) According to a recent study by BofAML and reported in the WSJ “The overlap in the top 50 stock holdings between mutual funds and hedge funds — two types of investors whose styles typically differ — now stands at near-record levels.”If you’re buying companies like Salesforce (CRM) at these valuations, this late in the game, you may find yourself eating like a bird and crapping like an elephant. Just saying…

2) Third-quarter EPS guidance is the worst it’s been since 2011 with 60% of companies revising guidance, revising lower (chart via Bloomberg).

3) Upward analyst revisions as a percentage of total revisions for the S&P 500 dropped to 41.3%. You want to see negative expectations being revised higher to sustain a bull run (see 1/16 – 12/17), not this (chart via Citi).


4) There are a LOT of people who are bullish on bonds, which may not be so bullish for, errr, bonds… (chart via Bianco Research and @MacroCharts)

5) Meanwhile, the market’s “implied probability of a large increase in inflation over the next five years” just hit a record low. Maybe the expectations pendulum has swung too far? (chart via @MacroCharts)

6) Shipping rates are trending up and nobody seems to care… The Baltic Dry Index (BDI) recently hit 6-year highs. Here’s a writeup I did earlier in the year laying out the reasons why I’m so bullish on shipping stocks.

7) And we’re seeing up-trending shipping rates even though global trade is contracting. Just wait until global growth bottoms… (chart via MS)

8) The US dollar (DXY) is being driven by 2y and 10y rate differentials. For the dollar to roll over, the Fed needs to get ahead of the market’s dovish pricing and do a surprise 50bps cut this week or strongly signal more willingness to aggressively cut into year end.

9) So keep an eye on this.

10) 2Q GDP came in at a 1.2% annualized rate and downward revisions reigned in near-term momentum. Morgan Stanley notes that “The slowdown in investment looks even more stark beginning in 1Q18. Net trade, inventories, and profits have also declined… we initiate our 3Q19 GDP tracking at 1.7%” (chart via MS).

11) Revisions versus previous (chart via MS).

12) The world is in a manufacturing recession and the US is about to join ‘em. Markit’s US manufacturing flash PMI shows the first negative manufacturing PMI print for the US since it clawed its way out of the 09’ recession (chart via MS).

A Monday Dozen [CHART PACK]


Economic history is a never-ending series of episodes based on falsehoods and lies, not truths. It represents the path to big money. The object is to recognize the trend whose premise is false, ride that trend, and step off before it is discredited. ~ George Soros

Good morning!

In this week’s Monday Dozen we ask the question: Is FX volatility the last shoe to drop? Plus, we have wage growth and rising margins in the eurozone, fund managers pulling money out of EM, and a big-data machine-learning analyzing the US economy.

1) Back in March, I wrote a piece titled “There’s a Big Macro Move Brewing in Markets” noting the compressed volatility across the wide range of macro instruments; from rates and precious metals to major FX pairs. Since then, we’ve seen bond volatility rip (chart via MS).

2) And then precious metals vol followed… Vol compression regimes tend to lead to expansionary regimes (ie, big trends).

3) Now we’re waiting for the last shoe to drop (major USD pair FX volatility). EURUSD 6-month vol has only been this low two other times (2007 & 2014). Both compression zones led to massive trends. Vol compression doesn’t dictate direction, it just signals that a major move is coming. But… gold does tend to lead USD at major turning points and rising gold points to a lower dollar.

4) There are a lot of good looking long-term USD pair charts out there (USDJPY, EURUSD, USDMXN, USDCAD, USDCHF etc…). Here’s a weekly of the Brazillian real. If this were a stock, would you want to buy it or sell it?

5) The US dollar is one of the most overvalued currencies in the world right now, according to a number of valuation measures. Here’s The Economist’s Big Mac index, showing that the euro is over 20% undervalued relative to the dollar.

6) The history of the dollar in 7-year cycles. The early 80s bull market in USD lasted 1,650 days. The late 90s bull, 1,719 days. If the current dollar bull market is, indeed, still alive, it’ll be the longest at 2,063 days and counting.

7) Euro area wage growth is picking up while inflation breakevens are plummeting. I’m guessing this divergence closes with breakevens ripping higher — think what that may do to European bonds currently yielding sub-zero (chart via Credit Suisse).

8) UBS’s Evidence Lab finds that European corporates are turning more optimistic on their pricing power and subsequent margin expansion over the next 12-months.

9) GEM fund manager weight versus the MSCI Emerging Market index relative to their 5-year average/min/max. The graph shows that fund managers are underweight EM relative to the index and their 5-year average (chart via MS).

10) And investors have been pulling their money out of emerging markets for 10 out of the last 10 weeks (marked by gray vertical bars).

11) BofAML’s big-data machine-learning US Business Cycle Indicator shows that the US economy is moving away from a recession regime and into a “soft patch”.

12) This chart from Barclay’s shows Iran’s exports and key sanction dates. Iran has gone from exporting over 2.5 mb/d in 2018 to less than 1mb/d today. When the current deceleration in global growth bottoms, the oil market may become a bit tight…

Rough Seas Ahead


***(The following is an excerpt from a recent note sent to MO Collective Members)***

Markets are about to hit some rough seas in the month(s) ahead. I’m not calling for a bear market or major crash but more expecting some choppy sideways/slightly lower action. We’re going to button down the hatches a bit (ie, reduce equity exposure). 

Here’s what I don’t like: 

  • Numerous measures of sentiment/positioning are now showing excessive bullishness and complacency
  • Our indicators suggest US GDP is about to roll over hard and that means lower earnings
  • Consensus earnings estimates for Q4 on are way too high considering
  • Market valuations are at levels that have acted as a brake on further gains in the past
  • I’m expecting earnings beats but bearish guidance this quarter

Starting with sentiment and positioning. 

Our Composite Sentiment/Positioning Index is back above the 50 level (red line) which marks excessive bullishness and complacency.

Sentiment Trader’s “Dumb Money Confidence” indicator is near cycle highs. Forward returns for stocks have been weak following similar readings in the past. 

Investors Intelligence Advisor Bullishness is near 60%. The market has dipped or traded sideways over the following month each time this indicator has crossed the 60% mark.

And then our Total Put/Call 10-day moving average indicator shows that investors are complacent and are not hedging their downside relative to their bullish bets. 

Now let’s look at economic growth. 

I’ve been talking about this one a lot, but our Philly Fed indicator suggests US GDP growth is headed for sub 2%.

The Atlanta Fed’s GDP Now Forecast is tracking just 1.6% growth. 

Our Business Conditions Diffusion Index points to the ISM entering contraction territory in the coming months. 

The Yardeni Boom-Bust Barometer, which is a composite fundamental indicator, is diverging from the uptrend in stocks. 

Service’s growth looks like it’s about to follow manufacturing’s lead and trend lower. 

Remember the Levy/Kalecki Profits Equation?  Net investment is what drives profits in an economy, which is why capex or non-residential private fixed investment is so important to both economic and earnings growth. This is why the following is no bueno.

The fiscal stimulus in the US is rolling off. What was once a tailwind is becoming a headwind. Growth in the US is now “catching down” with the rest of the world. This is bearish US equities, bullish bonds, bullish precious metals, and bearish the US dollar.

Considering this backdrop, earnings estimates following Q3 onwards are way too optimistic and the current Forward PE for the S&P 500 is too high at just under 18x next year’s earnings.

Consensus earnings estimates for this quarter are low so I’m expecting some easy beats. But we’re likely going to get decent beats coupled with bearish forward guidance and management commentary this quarter, commentary like the following from CSX Corp’s recent earnings release (excerpt via CNBC): 

“Both global and U.S. economic conditions have been unusual this year, to say the least, and have impacted our volumes. You see it every week in our reported carloads,” Chief Executive James Foote said on a conference call Tuesday after the earnings report. The present economic backdrop is one of the most puzzling I have experienced in my career

Mark Kenneth Wallace, executive vice president of CSX, said on the earnings call. “On the merchandise … there are signs of slowing economic conditions in both IDP and GDP for Q3 and Q4, pointing to a less robust economy in the second half.

“We’ve obviously seen evidence of this in our own business, and now see a softer industrial environment, with signs in our automotive, chemicals and metals segment,” Wallace said.

Brace yourselves for some higher volatility!

A Monday Dozen [CHART PACK]


Be a disciplined rational investor. Follow logic and analysis rather than sales pitches, whims, or emotion. Assume you may have an edge only when you can make a rational affirmative case that withstands your attempts to tear it down. Don’t gamble unless you are highly confident you have the edge. As Buffett says, “Only swing at the fat pitches. ~ Ed Thorp

Good morning!

We’ve got decelerating global growth and falling earnings but flush liquidity, EMs turning a possible corner, their central banks pivoting hard, a potential EMFX long, and low recession probabilities + much more. Let’s jump in…

1) BofAML’s Global EPS model is predicting an ongoing earnings recession.

2) Global PMI and New Orders are now below 50 (contracting), global trade growth fell further in June, US ISM New Orders Index is “catching down” to the rest of the world, and DM PMIs continue to dip… (charts via MS)

3) Global Real GDP growth slowed sharply over the past year and looks set to continue to do so (chart via MS).

4) But liquidity (ie, financial conditions) remain very loose.

5) And this is interesting… EM manufacturing is outperforming DM for the first time in over 7-years (chart via HSBC).

6) After significant tightening last year, financial conditions in emerging markets are now starting to ease (chart via HSBC).

7) No doubt being helped along by a significant turn in EM monetary policy over the last 6-months (chart via HSBC).

8) Yet, fund flows into EM remain weak (chart via HSBC).

9) If EM is bottoming then I like the Mexican peso here (short USDMXN). It’s a technically nice looking setup. We may see a break lower this week, keep your eyes peeled.

10) Plus, MXN offers a LOT of positive carry right now.

11) The US Conference Board Employment Trend Index is starting to bleed (chart is month-over-month %). It’s not signaling that its time to sell your stocks, grab your children, and run for the hills quite yet. But it’s something we should keep an eye on.

12) The St. Louis Fed’s Smoothed Recession Probabilities indicator says we’re not in the “danger zone” at the moment. The indicator is “a dynamic-factor markov-switching model applied to four monthly coincident variables: non-farm payroll employment, the index of industrial production, real personal income excluding transfer payments, and real manufacturing and trade sales.”

A Monday Dozen [CHART PACK]


Global macro is the willingness to opportunistically look at every idea that comes along, from micro situations to country-specific situations, across every asset category and every country in the world. It’s the combination of a broad top-down country analysis with a bottom-up microanalysis of companies. In many cases, after we make our country decisions, we then drill down and analyze the companies in the sectors that should do well in light of our macro view.

I never lock myself down to investing in one style or in one country because the greatest trade in the world could be happening somewhere else. My advice is to make sure that you do not become too much of an expert in one area. Even if you see an area that is inefficient today, it’s likely that it won’t be inefficient tomorrow. Expertise is overrated. ~ Jim Leitner

Good morning!

We’ve got record disconnects between flows and returns, unusual stock and bond performance, a wide disparity in sentiment between both, and much more… Let’s jump in.

1. Chart and note via BofAML with emphasis by me “Who’s buying: note record disconnect between flows & returns in 2019, only similar year was 2016; buybacks = #1 source of market support in 2H’19; US banks announced $129bn buybacks next 4 quarters.” See chart #5 from last week’s Dozen. Buybacks are set to accelerate beginning in August and run strong into the end of the year.

2. “STOCKS ARE OVERVALUED, STOCKS ARE OVERVALUED!!” The S&P 500 is trading at a P/FCF multiple that is well below its historical average (Chart via @1MainCapital).

3. There have only been 10 other times over the last 75-years when stocks and bonds have both put up double-digit returns over the same six month period (chart via NDR).

4. Stocks went on to outperform bonds each and every time over the following 12-months (chart via NDR).

5. BofAML’s Bull & Bear Indicator is close to triggering a “buy signal”. The indicator shows sentiment and positioning are near “extreme bear” territory.

6. Meanwhile, the S&P 500 closed at a new all-time high last week.

7. The Nasdaq McClellan Summation Index ($NASI) reversed from a temporary sell signal and is back in a strong uptrend.

8. Daily Sentiment (DSI) for the Nasdaq (NDX) relative to bonds is at extremely depressed levels (chart via @MacroCharts).

9. Consensus Inc’s Bond Sentiment Index shows bond bullishness at 7-year highs.

10. Morgan Stanley’s US Cycle Indicator is still in a downturn.

11. The US unemployment rate ticked up to 3.7% last week but is still well below its 12 and 36-month moving averages.

12. BofAML’s Asset Quilt of Total Returns. Notice how the returns for each asset class have almost entirely flipped from last year?

A Monday Dozen [CHART PACK]


Well, I was worth over one million after the close of business that day. But my biggest winnings were not in dollars but in the intangibles: I had been right, I had looked ahead and followed a clear-cut plan. I had learned what a man must do in order to make big money; I was permanently out of the gambler class; I had at last learned to trade intelligently in a big way. It was a day of days for me ~ Jesse Livermore, Reminiscences of a Stock Operator

Good morning!

We’ve got over a century of equity volatility, falling Capex, contracting margins, and traders in a near PANIC. Here’s your Monday Dozen Chart Pack.

1. This is an awesome chart that I found floating around on the twitters. It’s from Bernstein Research and shows 119-years of equity volatility across five different macro eras. You can see that the percentage of time spent in recession (dotted green line) has trended lower and dropped considerably over the last century.

2. This chart from UBS shows how much single stock short interest has dropped over the last 3-years. Looks like people have kind of given up on shorting. Maybe it’s time to start increasing your short book?

3. Capex is a critical component of the Levy-Kalecki Profits Equation. Morgan Stanley’s composite Capex Plans Index fell again in June, back to levels last seen in mid-17’.

4. US Gasoline stocks, measured in 4-week average of days of supply, has fallen well below previous 5-year lows (chart via MS).

5. This chart shows UBS’s rolling 5-day Corporate Liquidity Signal (aka, buybacks). The net destruction of shares (more shares being taken off market through buyback and M&A relative to new issues) continues to be one of the most dominant drivers this bull cycle. It’s important to keep an eye on where net buybacks are trending.

6. This is one reason why we continue to be positioned net long the overall market.

7. This chart shows the current US Corporate before tax profit margins based against previous cyclical trough relative to past business cycles. We can see that margins are contracting but if this cycle is like past average ones, from a profit margin standpoint, then recession is still a ways off (chart via Societe Generale).

8. With average debt servicing costs for US companies at depressed levels, the force driving contracting margins is primarily labor costs.

9. The current spread in real effective policy rates between the Fed and the ECB is unprecedented (chart via Societe Generale).

10. Total speculative USD position. Lots of air to be let out of this trade. I’m short and looking to get more so (chart via GS).

11. This chart shows the number of 25bps hikes/cuts delivered every year relative to the amount of 25bps cuts already priced in over the next 12-months (chart via MS).


A Monday Dozen [CHART PACK]


When traders think about money management, they think about stops and trade management. But a big part of the equation is knowing when to go all in, increase the leverage and press your trading to the hilt. Load the boat. These opportunities have an increase in volume and volatility. There is no point in actively trading in a dull market. Let the market tip its hand and come to life first. And then if you are fortunate to be in the groove and know you’ve got a tiger by the tail, milk it for all it is worth. This is where the real money is made. ~ Linda Raschke

Good morning!

We’ve got bonds that are massively overbought, spiking volatility in gold, a bearish consensus, and signs of increasing market strength. Here’s your Monday Dozen Chart Pack.

1. The UST 10-year yield moved below the 2% level last week (dotted red line) before quickly reversing. It’s at its lower daily, weekly, and monthly Bollinger Band and its weekly RSI shows it’s extremely oversold (green vertical bars). Do we see a reversal soon?

2. Gold volatility spiked over the last two weeks as the barbarous relic made a move above the all-important $1,400 level. Large jumps in volatility like this often mark short-term reversal points. Chart via SentimentTrader.

3. According to the BofA Fund Manager Survey, fund managers reduced their equity exposure last month by the second largest amount ever (largest occurred in August 11’). They now have their lowest allocation to stocks since March of 09’ which is 2.1std below their long-term average.

4. They LOVE defensives (cash, bonds, utes) and HATE energy, eurozone, and industrial stocks.

5. Citi’s Pulse Monitor Bear Market Checklist shows that the risk of a recession and an extended bear market remain exceedingly low. An “imminent bear market” signal is triggered when amber and red combined readings rise over 50% — current readings are 25% with only one “danger” warning.

6. Foreign demand for USD denominated securities has been weak but US corporate repatriation flows rose last year, following the tax cuts, which helped keep the US dollar elevated. These repatriation flows are now starting to turn over (chart via MS).

7. EURUSD 2-year swap rates and EURUSD have diverged, with swaps moving much higher. Swaps often lead the way…

8. FX volatility has not followed bond volatility yet… I think that’s about to change.

9. The strong dollar has dented US corporate profits over the last 18-months. A reversal in the DXY here would be a major tailwind to US MNCs.

10. Market breadth is STRONG. Another Zweig Breadth Thrust Buy Signal recently triggered. Total Put/Call 10dma indicator still has room to fall before a sell-signal is tripped.

11. The charts for silver miners look 🔥 + specs are getting pinched on crowded short positioning (chart below is a weekly of CDE).

12. The Three Pillars of US Macro (Labor, Liquidity, and Consumption) are still alive and well. An impending recession is unlikely.

A Monday Dozen


In the final analysis, you need to have the courage to hold the position and take the risk. You need to be aware that the world is very sophisticated and always ask yourself: ‘How many people are left to act on this particular idea?’ You have to consider whether the market has already discounted your idea. ~ Michael Marcus

Good morning! We’ve got slowing global growth, the Fed’s room to maneuver, Canada Surprising, and some falling ROE… Here’s your Monday Dozen chart pack.

1. The percentage of PMIs around the world is still positive but shrinking fast.

2. The OECD Total CLI is at its lowest level since the GFC.

3. But it looks like it may be starting to base on a MoM and YoY basis.

4. The market is way ahead of the Fed but there’s still plenty of room for it to become more so.

5. Ed Yardeni’s Boom-Bust Barometer (dotted red line) suggests a pullback in equities may be coming.

6. The relative valuations of European banks are in the 1st percentile of their 10Y history — that’s the lowest since the height of the dot-com bubble. Is there any price at which EU banks become a buy?

7. Bonds and equities are telling two different stories. One of them is very wrong.

8. Here’s the MO Composite Sentiment Index. It includes a number of short and long-term sentiment and positioning data. Investors were pretty bearish going into last week but became more positive by Friday and are now slightly bearish/neutral heading into Monday.

9. What’s going on in Canada? America’s tophat has the highest Citi Economic Surprise Index (CESI) reading, by far. That means the economic data is coming in more positive than the consensus forecast.

10. Relative yields between the US and key trading partners have recently turned against the dollar (black line). Will the dollar follow suit or just shrug it off?

11. Relative growth though is keeping the dollar strong — at least for the moment.

12. Aggregate Return on Equity (ROE) may be rolling over again after it found a bottom in mid-17’.