Monday Morning Market Update
Big picture first, below are the main 3 US index performances over the last year with moving averages. Gains for 2018 are close to nil, & the 50dma is attempting to death cross the 200dma on all major us Indexes, if they haven’t already, looking at you Nasdaq & Russell 2k...
Low volume, low sentiment dead cat type looking bounce today. Was kind of hoping for a bigger bounce up to buy some inverse products on the cheap
King dollar is quiet, but still very strong in the recent range
Commodities are less volatile & making small moves compared to recent days. Oil has been wild to the downside, & natural gas has been even wilder to the upside. Copper has been selling off of late, which can be an indicator of less development projects or funding.
Crypto’s are still depressed, but may have stopped the free fall for now. I think crypto’s are headed lower for longer based on the rest of the big picture. Central banks have wedged this fake Goldilocks economy between a printing press & hard place. They cannot let an asset like crypto come into the scene & steal the show until something breaks in the bond & equity market. Then we get a huge deflationary event, followed by huge bull runs in crypto’s & metals & perhaps some specific currencies.
Look what happened to gold during the last crisis as evidence for crypto’s heading lower.
& silver
They both bled with the bigger markets at first, then skyrocketed to all time highs.
We know what bitcoin has been doing of late, her 0’s & 1’s will get manipulated & sold off as much as possible, to allow big banks to accumulate on the cheap & acquire enough stake to try & fully control the class.
There is a lot of potential for big gains & losses at moments in time like this one. Markets can go violent in either direction, but I firmly believe we are headed for a deflationary collapse soon, followed by inflation like we have never seen before. Which will be extremely bullish for crypto’s... eventually...
Anybody out there with the grande huevos to bet against this equity market right now?
Let's hope the bulls come marching in sooner than later ;)
I try not to let hope affect my investment logic, but Ive been hoping for a sound money system since i learned what interest was when I was a little kid. Debt never made sense to me. Kind of amazing I didn’t learn what fractional reserve lending was till 20 years later. That is a well designed sneaky system of terrible education they got there