$MUT W  $USD W

A BoAML analyst believes that if Chinese FX drawdown numbers on Sunday are on the low side there could be a strong (SM) bear market rally:

“As Hartnett writes, “US dollar unwind may ultimately be seen as an important inflection point for US monetary conditions…signal that “automatic stabilizers” finally coming into play; means relief for “humiliated” assets in EM, commodities, resources; markets begin to discount policy response; if China FX reserves data is better than expected, we think a bear market rally is likely to be vicious.”
http://www.zerohedge.com/news/2016-02-04/event-could-unleash-vicious-bear-market-rally
The opposite (high FX reserves drawdown), is also true – high FX reserves drawdown, SM’s dump.  I understand China is essentially closed next week for their New Year so, if that is the case,
there won’t be any shocks coming for their direction for the next week other than that.
For me, the other pertinent point with respect to the SM’s in the ST is Yellen’s testimony next week. If she is dovish, then that would add more fuel to the $USD bear fire,
pushing $WTIC and commodities further upwards and taking the broads with it. I would have thought there was a lot of positioning on the short side at the moment
with respect to the SM’s and those positions could be ripe for a squeeze. To top it all off, that blind, 3-legged dog with fleas that is Glencore is actually catching a bid!
Not exactly end-of-the-world stuff, not yet, anyway.
GLEN.L