Last week was a wild, tumultuous week. Underneath the surface we are seeing some pretty major changes.
The Fed has lost all credibility after Janet Yellens 'inflation' speech. The Fed choked & did not raise rates when they said they were going to. As a result, the market is confused but could be showing early signs of pricing in another round of QE.
The Fed has lost all credibility after Janet Yellens 'inflation' speech. The Fed choked & did not raise rates when they said they were going to. As a result, the market is confused but could be showing early signs of pricing in another round of QE.
I have been watching this chart of 10yr Treasury Yields for quite some time. It was looking promising that yields would begin to rise, but when the Fed didn't act: The trade began to unwind.
A Market Hellbent on Chopping Everyone to Pieces. Price continues to violently consolidate its post-crash range with many violent reversals.
You can see watching real-time price action that stocks have somewhat linked to the dollar in recent weeks. Meaning, when stocks go up, the dollar also goes up. This is an interesting relationship to me, one that seems somewhat paradoxical as a rising dollar should in theory put a lid on equities.
The BDI remains weak with momentum showing signs of rolling over underneath the daily pivot point. The shipping industry continues to show no signs of economic strength.
I remain Bearish on Oil prices. However, oil has been working through it's own violent consolidation with intense intraday whipsaws. I'm staying away from oil until support finally gives out.
We can see that for the last Quarter Bears have been Beating Bulls quite brutally. However, recently Bulls have managed to hold prior support levels & are attempting to push us up through a fast zone. If successful, we may potentially see a very fast and violent move into areas of strong resistance around WLSH 2100
Look, at the end of the day, what is coming is inevitable. The Centrally Planned Ponzi-Bubble will implode and stocks will head much lower. However, price action is compelling enough for me to lay off the short side in the short-term, at least until Bears once again wrestle away initiative from the Bulls. & begin to break us lower.
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