China stocks hit again this morning...US yields cross-over soon?

We’ve been tracking this chart, showing the correlation between Chinese stocks, the yuan, and yield spread (with the US). The incentive to keep hot money in China fades as the US spread gains. We don’t know if the damn will break, and capital will rush out, but it seems risks are growing.

US2Y

Currency Currents is strictly an informational publication and does not provide individual, customized investment advice. The money you allocate to options should be strictly the money you can afford to risk. While every effort is made to evaluate the actual experience of subscribers, all performance figures must be considered hypothetical, and past results are no guarantee of future performance. Detailed disclaimer can be found at http://www.blackswantrading.com/disclaimer.html