Reason For The Market Rally...

Dollar rises most against Japan's yen since January 1974, gains 5.2% to 97.57 yen in New York - Bloomberg

RCM Comment: You have read in this blog repeatedly over the last few weeks about the tsunami of redemption & repatriation that was dragging all asset classes down in price. The $64,000 question: How long will this selling action last? No one knows the answer for sure, but the canary in the coal mine, the light at the end of the tunnel, the lighthouse in the storm (somebody stop me!) is the action of the Yen vs the US$. As funds redeem and repatriate the yen carry trade unwinds rapidly and sends the Yen up strong vs the US$. Once the pressure of the unwind is over the US$ snaps back signaling the end of this round of redemptions. We have no way of knowing if this is the end of the redemption wave or just a pause, but today is certainly constructive.