Yellen preached to Congress this week and double talked (as you would for the prestige and big bucks) her way round where the FED looks headed.
Everyone seems to hang off the FOMC meetings for some small indication as to what the FED thinks and will do. Now, when you consider that the existing QE should wind up in October that brings the next step into real living, nail biting colour.
The FED will raise interest rates (or so they say) sometime between October and Q3 next year and the justified fear that brings to markets in the US should make for very wild market gyrations probably starting October. If you short equity markets and you're good at picking entry points shorters should make a monza.
As US interest rates affect global economies US movements should be expected to be reflected in local markets.
Best to keep an eye on the short term US bonds market. It could provide a more savvy idea of when and how much of an interest rate rise you could expect then link that to an equity short.
Or just trade bonds. Looks like later this year things could get very hairy.
