What I learned watching the "The Law of unintended consequences video by Raul Pal of realvisiontv

1) Real risk is currency risk not interest rates

2) Historically whenever $ rallies emerging markets cave in

3) $ is the World's reserve currency thus when US sneezes World catches cold

4) Faster $ goes up deflation becomes more real IE lower bond yields ( bond market rally)

5) We are entering a high volatility environment

6) No brainer trades if major levels do not hold
i) long DXY
ii) short EEM
iii) leaps in CNY
iv) long WMT

 

What created the currency risk 1) policy divergence between US, Europe, Japan and China 2) technical pattern within the $.