It is a picture of the ongoing and natural need of markets to correct the man-made excesses of monetary inflation and leverage creation. You know, the stuff that keeps the addicts satisfied?
Today we find our friend the "Continuum" having held the lows of 2008's Armageddon but finding resistance at the red dotted channel line we might imagine exists. As blogger pal IWNATTOS might advise, maybe I should put a 'TM' after that word, because it is only one of the most important macro indicators out there - to me anyway.
If it's "party on Garth", then that line will break and T bond yields will rise. If not, it's 'hello Bob!', as in Prechter. But speaking of Bob, his decade+ bugaboo - AKA his blind spot on gold - will make a pure deflation argument hard to reconcile.
I, Captain Obvious, say that gold has done something very convincing this week. There will be a lot of political energy fueling the proceedings over the next couple months and they are even politicizing the Fed - as in 'AUDIT IT!'
The perceptions game is just getting warmed up and a really virulent market has now turned into a really enjoyable one again. I have been advised that to grow my newsletter I need to make stock picks. Ha ha ha... I'll take slower growth there and get the macro right because there are few successful stock picks without being on the right side of the macro.
This chart always seems to get me drifting into rant, ramble or screed mode for some reason. Wonder why.
Subscribe to NFTRH or
Subscribe to the free eLetter