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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (18219)

5/20/2016 2:32:08 AM

From: John Pitera

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The Ox

Respond to of 33421

Chinese offshore yuan is diverging from the onshore yuan it's going lower which had the last 2 times it has occurred led to a significant sell off in the Chinese market. the white line is the offshore yuan rate and the cyan blue line is the onshore price of the yuan.

The Yuan has been weakening against the USD the past 3 weeks... and the communist party has been actually stating some warning regarding the debt loads of some of the quasi state owned enterprises.

So Far the the divergence of offshore and onshore is not as large....but it's a trend to watch. Since Crude, the USD and China have been 3 of the leading pulses of the markets this past year.

the offshore yuan rate moved away from the onshore last August and in January and each time the China market got rocked and we felt the collateral damage in our global risk markets... which includes the US stock market...... it is starting to happen again... as Art Cashin says in his missive every day... stay very very nimble.

bloomberg.com

JP