The market was worried about a potentially terrible jobs report number this morning but the better than expected number looks like it wants to provide the catalyst for the model’s forecasted “V” bottom in the USD.
Everything is playing as scripted so far and if I’m correct we’ll see the USD and Bonds get increasingly stronger as the stock indexes roll-over and get annihilated.
Remember, if I have this correct here, this will be all about the Carry Trade unwind and as such this should be a very mechanical decline (forced selling in mkts they’re long and forced buying in mkts. they’re short).
-JGS