The markets have been volatile lately, but two charts signal that we are in the midst of a new bear market. Although Japan recently cut its benchmark lending rate into negative territory, the yen is still breaking out against the U.S. dollar. This is a fear trade that has been building up over the last year.


Chart provided by Tradingview.com

Additionally, gold producer stocks have formed a strong bottom and are also breaking out higher. The chart below is of McEwen Mining  (MUX - Get Report) . While the U.S. stock market formed a top in 2015, these two assets have been in the process of a reversal of their own. With the confirmation taking place over the last few weeks, it looks as if the asset rotation is one seen during bear market declines.


Chart provided by Tradingview.com

I am short USDJPY, and long MUX

This article is commentary by an independent contributor. At the time of publication, the author was short USDJPY and long MUX.