Yields and Equities doing the same dance...

Here expecting Equities and Yields to perform the same dance till we clear the next important CB combo in September. We are at a crucial point in the cycle, a superb time for short covering to begin and with that the opportunity to ride a temporary correction before ECB/FED Sept.

A good example of a positional trade ahead of the ECB beginning to cut further; German Bonds are stretched and we are going to see a pullback here whilst the DAX will find a bid on the Dovish CB front.

Best of luck all those trading the pullback to position for ECB cuts.

Commento:

A major breakdown here... Recession already has one foot in the door.