@Qw - The divergence calls for stocks to bounce on the fake KES strength. But the next round of selling when the econ data starts looking pretty ugly will lead to an interesting selling bout. Manufacturing sector will have trimmed earnings more than expected as well as banks. This really is yet to be priced in. An inverted yield curve is always a leading indicator. Until this flips over a recession is on the cards. During recessions you have rallies - bear rallies and they'll be plenty.
But since 2008 GFC I never underestimate the CBs printing madness resolve to kill off a recession immediately!? If you look at euroland & US stock markets lofty values, clearly the econ situation doesnt matter!?
So NSE faces a KES disconnect and a global stocks disconnect. Two divergence scenarios that tell an interesting story...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!