In a quiet overnight session, the dollar dropped set for its biggest weekly decline since March as traders prepared for a keynote speech by Fed chair Jerome Powell. Global stocks rose despite disappointment from the latest US-China trade talks as Beijing again intervened to prop up markets.
The Lira and Turkish stocks are sliding notably after Treasury Secretary Steven Mnuchin warned that Washington is preparing more sanctions for Turkey due to the lack of progress on the release of Pastor Brunson.
Crude is “the straw that stirs the drink” -> Higher Crude = Higher “Inflation Expectations” = Long Equities “Cyclical Growth”(Energy / Financials / Materials) / Commods / TIPS, Short Fixed-Income / Defensives in this TACTICAL “melt-up” phase
"Hopefully, the headlines around the world have been a wake-up call for over-optimistic investors. I continue to recommend that investors steer clear of Argentine stocks, at least until they’re a lot cheaper. About 50% cheaper should do the trick..."