“In theory there is no difference between theory and practice. In practice there is.” – Yogi Berra
Not a lot has changed from what we discussed this in our Latest Weekly Outlook. Markets continue to grind out recent moves but something seems to be a bit off.
Today’s chart is far from being one of our best efforts but it is key for highlighting the current dynamics and dislocations. Broadly speaking FX land seems to be in wait and see mode as Techs and Smalls Caps seem to be completely ignoring geo-political developments and tensions along with recent policy shifts.
Markets will do what they have to do but it is clear that these divergences will not continue Ad Infinitum.
