Bill Fleckenstein mentioned that there is growing evidence of a move away from the deflation trade. Specifically, he focused on the 10-year treasury, where we are seeing higher highs and higher lows on the yield (if he is right in his intuition -- and I think he is -- then I should credit myself for pointing out
recently that it might be time to start a small short position).
In any event, as further evidence that inflation will become the dominant force that drives markets, the Japanese Yen appears to have broken out of its range, moving above the 78 level (oft-discussed on this site). The daily chart below tells the story.
