The Extremes Are Starting To Bite

Extremes are biting

Brazil is going vertical, gold just suffered a $400 reality check and Europe is finally starting to feel the energy shock. Different markets, same message: some of the extremes we've been flagging are beginning to matter.

Brazil remains supported by commodities, but spot up, vol up and 11 straight gains is increasingly difficult to chase. Gold has gone from screaming overbought to no man's land, while Europe's energy problem is starting to bite despite positioning already being extremely light.