The Dow Is Going Higher

Cutout paper illustration representing scheme and Stocks inscription

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The market professionals do not want the public positioned in the market better than they are.

Market professionals use the news to scare the public out of their hard earned winning positions. 

Let's face it:
- All the FED tightening has been offset with Dept Treasury and Rev Repo antics.
- Higher US 10 yr rates have caused trillions of book losses on bond investments around the world.
- The FED has broken the most important market in the world, the US Treasury market (Bofa Bond Move index > 140, DXY > 107)
- Inflation is sticky due to food and energy elements, also from monetary stimulus from billions in new interest income.

Unless WW3 or US 10 yr explodes 3% higher (see KINK in chart 1 below), the worst news is over, and now the FED will try and repair the damage done to their own bond market. After all, the US bond market is GOD. US Recession fears are overplayed while there are ongoing fiscal spending deficits into a US election year. 

Chart 1 - Dow Jones Cycle. Unless there is a kink the Dow should travel sideways to higher.

Chart 2 - The FED can not contain inflation and must bend a knee to it own bond market, on the back of rising gold and silver prices gold stocks still have room to move higher during the current up cycle.

 


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US GDP Recovery
Japanese Yen Cycle Review
Global M2 Effect On Gold

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