Gold Still Getting A Bid; But Stocks Blowing Their Lid

All in all, waiting for Gold to rise may at times feel akin to Sam Beckett's "Waiting for Godot"; but as for the S&P we see it as "Waiting to Godown". Here it is in red vs. the Econ Baro from a year ago-to-date:

Add to the picture that, per the Federal Reserve Bank, stateside household wealth posted a record Q4 loss. And similar to Larry Summers' comment from a week prior, we've also Jeff Gundlach's reference to "Modern Monetary Theory" as a "crackpot idea". My goodness, you do have some Gold? Let's drill a bit deeper into the mine.

Here we've our dual-panel graphic of the daily bars for the last three months-to-date for Gold on the left and for Silver on the right. In both cases, the declining baby blue dots of linear regression trend consistency are not promising of higher prices near-term; however as price itself is at least the initial driver of the dots, were the current trading resilience to pull the "Baby Blues" up before reaching their respective -80% axis levels, the precious metals would likely be back into rally mode en route toward flipping the weekly trend back to Long:

Which in turn begs the question as to which may be the easier way for price to travel. Per the 10-day Market Profiles for Gold (below left) and Silver (below right) there appears in both cases to actually be less upside resistance versus downside support. Shall we therefore keep those bids coming in? Yes, let's:

Finally, speaking of the aforementioned Fed, its Open Market Committee gathers this coming Tuesday/Wednesday (19-20 March) toward deciding to do nothing. For were they to do something -- be it a rate rise that the economy would not be able to sustain, or a rate reduction that would signal they've acknowledged the economy is weakening -- we expect either way the S&P 500 would not take it well. Rather, keep the complacency of denial alive as the can is further kicked down the road. For it's all too fragile to do anything at this point. Except to own Gold. Just ask Big John:

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