“What Box?” said Pandora.

And all the FED's horses and all the FED's men couldn't put Pandora's box together again!

Excuse me for murdering both Mother Goose and Mythology. The damage in the bond market can't and won't be repaired. It will, and is beginning to spread to stocks. Charts and indicators within.

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A Crack

Last week's topics here were the new rally in the dollar and the expected low in bonds. I also said that the dollar rally would eventually manifest as a stock decline, as the value of Central Bank collateral on their balance sheets eroded. I've been tracking that close correlation as subscribers know for some time. These two charts are informative. More info within for subscribers.

052615balance

click chart to enlarge

052615mscibal

click chart to enlarge

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