The Dow finally traced back to it’s January high so I thought it’d be interesting to compare some major indicators of money flow.
Starting with King (for now) dollar. The summer spike sent inflationary ripples through emerging markets. We have seen a slight devalue since but not nearly enough compared to inflation of other currencies. Seems like fiat problems are accelerating in general, historically they don’t decelerate once this has begun.
Yields have been steadily climbing on the 10y. I don’t think they can go much higher without putting a lot of competitive pressure on equities.
& the Dow, making a new high after a sharp sell off in the beginning of the year. Is this a double top, or maybe the start of a final melt up? I don’t trust it.
The S&P has put a little more gain on the January high, compared to the Dow. The S&P has a lot more companies in it vs the Dow, so is probably a better overall indicator. However, all are manipulated by central banks & corporate buybacks etc., so be aware of complacency.
The Nasdaq had a smaller early year sell off & charged to new highs in the beginning of the summer. Been showing a little weakness lately, but nobody would be surprised to see it skyrocket for no real reason. We are that point in the market where things don’t need to make sense, money doesn’t need to grow on trees. It just needs to be able to grow in to server space.
Gold had a nice start to the year, but could not get over the Great Wall of 1350. That wall has been solid for many many years now. Perhaps this winter will finally break the Wall of paper manipulation. Central banks are either accumulating it in preparation of a new economic model (Russia & China), or selling it off to try to save what’s left of their currency (Turkey).
It currently takes 85 ounces of Silver to buy one ounce of gold. The historical average is closer to 15 to 1, that plus a very manipulated & low spot price makes silver very attractive right now. So attractive physical demand seems to be skyrocketing yet the price remains depressed. You can see the price has been beaten up all year, while inflation rips everything else higher. Something will give, great time to buy, be patient.
Bitcoin has been slaughtered in 2018. Ever since Wall Street got its dirty little hands in the mix with futures trading. Now ETFs are coming, full manipulation for bitcoin. Still a bright potential future for bitcoin, I tend to think there is a lot of deep type state people behind it.
All of the above commentary is purely my opinion, I may or may not be correct about any of it. I’ve studied these markets for many years & highly recommend you all do the same. The only way to get our population out of debt servitude is to be educated & make choices that do not enrich the enslavement system. Real physical decentralized assets make a lot of sense to me. Debt free living makes a lot of sense to me.
Stay healthy & free everybody,
Thanks for reading
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The Dow is just way too inflated ... it's got to come down eventually.
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A great shaky tower built on cheap credit & share buybacks. Feels like it could be any day, but maybe a few months away.
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