Is The Selling Madness About Over?

Gold and miners resilience leading to further upswings, is on – and it seems that precious metals would lead select pockets of commodities (yes, silver looks ready to do that job, and that extends to the so far still range bound silver miners one day too) higher as we keep transitioning to a higher inflation environment for months already:

(…) With high inflation already here (don‘t look for too much relief once the low year-on-year comparison base is history), real rates are turning more negative – and nominal ones aren‘t yet catching up onto what‘s coming. Seriously, I don‘t know why majority of market participants have been caught this much off guard by the inflation data, which is the basis of cost-push inflation I had been talking quite many times already.

Negative real rates would start supporting the metals increasingly more as the decoupling from nominal yields gathers more steam. The precious metals upleg is still in its early stages, and about to add more to my open gold profits.

Crude oil would be positively affected by the anticipated rebound in commodities from the weekly setback, as these would balance out the rising yields in a way, and would do well past reflation time. Right on cue, my new oil position is already profitable.

Bitcoin had a high volatility day yesterday, but closed almost where it opened. Tentative signs of stabilization and accumulation are here, and Ethereum isn‘t wasting time in returning to growth, which is a positive signal for the best known crypto.

Let‘s move right into the charts (all courtesy of www.stockcharts.com).

S&P 500 Outlook

S&P 500

S&P 500 recovered, but it‘s all about volume and the upper knot pointing to stiffer headwinds just next.

Credit Markets

HYG, LQD and TLT

High yield corporate bonds (HYG ETF) made a steep and credible recovery, and the investment grade ones didn‘t perfom all too badly either upon the daily TLT „miracle“.

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