Many Japanese Yen currency pairs extended yesterday, meaning that it is now cheap against the other currencies:
So buying some Yen hereabouts seems like a good idea – we will follow and advise as the story unfolds.
Wheat made bottom extensions yesterday, in the nearer months. This has the usual meaning – the current decline should end hereabouts and a rally is likely. As we think that Wheat is in a trading range anyway (see Dec 10th edition) it makes sense to buy some here.
Elsewhere bonds have dipped yet more and now are a definite buy – they have come down all the way to the weekly-scale compressions that should provide very good support.
As we have been saying, a fresh bond rally could provide some upward impetus to stocks, thus breaking the current relationship that means (US) stocks go up as bonds go down and vice-versa.
RE
