An Exceptional Dollar Unwind

Returning record amounts of global hot money to its rightful owners, will end this global ponzi scheme instantaneously. Deja vu of 2008, an end-of-cycle inflow into dollar assets under the auspice of "flight to safety", will end with a violent mass exodus. The dollar (inbound) carry trade is the most crowded trade in human history. It's driven by the pervasive Wall Street groupthink of "TINA" - There is no Alternative, to U.S. stocks...

The theme of 2016 was the inbound dollar rally, driven first by Brexit,  then by divergent Central Bank policy, and lastly by Trump's planned tax cut which hammered U.S. yields higher.

$USD

The delta between U.S. and German yields has never been wider:

This entire carry trade based delusion was predicated upon Obama's eight year fake recovery all borrowed money, a fake oil recovery which was 100% OPEC bullshit, and a casino rally driven by multi-decade high optimism in their exalted saviour the groper-in-chief, featuring Treasury by Goldman Sachs and State Department by Exxon...

All of which means that you can fool pretty much everyone, every time...with the assistance of Kardashians, ESPN, and Faux News...

The entire delusion was underpinned by this miniscule end-of-cycle U.S. wage "growth" driving record global yield divergence:

Bought with both hands by the dumbest people to ever walk this planet...

Untold amounts of foreign hot money streamed into the U.S. as the Trump tax cut inhaled global capital...

However, the Euro is losing downside momentum...

USDJPY is rolling over as well:

2x dollar ETF

Which means that "TINA" is a one-sided trade getting set to unwind violently...

U.S. one year with regional banks:

As Financials go bye-bye and take the rest of the market down with them.

You know, like last time...

Of the 100 largest U.S. stocks, there are exactly zero at new highs right now...