Futures Chart Porn

Bonds Bitcoin and More

After spending the week building concession into the quarterly bond refunding the bond markets supply proved too much and by the end of the week the US Govt 10yr closed the week above the important 1.185% level to settle at 1.215%:

This opens the door for higher rates and for the 10y to hit 1.365% most likely on the ropes due to global equities continuing their march higher. We don’t see anything standing in the way and we don’t want to hear the bubble talk, its annoying, its false and it has no room in a construct that is completely rigged by global central banks. Magnelibra has talked at length about the never ending revolving door about those in certain areas of power linked to global banking decision making. Case and point, who is Janet Yellen and where is she now? Who is Christine Lagarde and where is she now? Even worse who is Mario Draghi and where is he now? In fact just for fun we pulled this favorite little meme of ours out of the archives:

Its so succinct so accurate the face, the arrogance and the cheap lighter he is using isn’t it? Ahh no wonder society is so blind to the realities of this construct, with all the programming going on, the conditioning its no wonder many just accept it, well Bitcoin hasn’t accepted it and in fact we are glad we don’t have to hear those morons calling it a “novelty” anymore. With all the stimulus going on with all the massive wealth concentration its no wonder Bitcoin is right near $50k its the pure mathematical antithesis of a fiat fractional reserve construct and many institutions are catching on, in fact we spotted this on zhedge this week, MS $150bn fund thinking Bitcoin As far as the Bitcoin chart, we will let it speak for itself:

With Bitcoin taking advantage of the massive amount of speculative fervor stemming from the global central banks balance expansion this shouldn’t be a surprise. Remember MV =PQ and with M increasing they pound the V down hard and those closest to the spigot hoard the treasure and massive wealth inequality occurs. Its no wonder the ill conceived commoner clamors for socialistic policies, we don’t blame them, we don’t fault them, they don’t understand the system, they think redistribution is the answer, sorry it never is, taking from productive resources and allocating to unproductive resources is an effort in futility. But we get it, we know why, but its patently false. So with all this expansion we will continue to call for the SP500 to run to 4300 this year and for the Nikkei to press on toward 1999 highs:

Nikkei been bullish since 23k:

We feel for the hard money crowd, but its only a matter of time before the paper shorts get smoked and when they do Silver will be up $50 in one day and gold $500 so be patient. For now Silver has held the 50eMA and looking ready to over take that $30 once again:

The energy markets has been the top performer for 2021 but the April Crude contract is running into the .786 tgt/rev area:

With all the hot money flows chasing equities, metals, bitcoin etc, its no wonder the long end of the US Bond market has seen its problems. However the day will come when the bonds shoot up 20% as everyone tries to bail out of risk assets due to some exogenous shock, only to find the exit windows are shut and there’s not enough parachutes to go around. See the reality is in a rigged system not everyone can monetize at the same time, i.e. sell to reap profits, it has to be done systematically. Its possible to sell when you want, but almost impossible when you HAVE TOO. Big difference but for now the long end is looking like it may continue to fall causing yields to continue to slowly rise:

For those of you that continue to deny the rigged system fact, feel free to explain this chart, feel free to use any statistical analytic tool, any known academic financial text book and indulge us, we are all ears!

We have said it over and over again, central banks are in the business of buying time, decades of it and this is evident of their policy. When the hammer of debt is your only tool, then everything is a nail and artificially driving down interest rates, automatically lowers the equilibrium of all rates NO MATTER WHAT THE LEVEL OF RISK IS!

That’s our reality and thus at Magnelibra we choose not to fight it, rather, embrace it, not that we agree with it, but rather, we have seen a thing or two and we just know better!

Till next time…good luck this week traders and investors!

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-Magnelibra Econemotions

DISCLAIMER: For educational purposes only. This is not a solicitation to buy or sell commodity futures or options on neither commodity futures. The risk of trading securities, futures and options can be substantial and is not for everyone. Such investments may not be appropriate for the recipient. The valuation of futures and options may fluctuate, and, as a result, clients may lose more than their original investment. Nothing contained in this message may be construed as an express or an implied promise, guarantee or implication by, of, or from the author Michael Agne owner of Magnelibra Capital Advisors. We will never claim that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Although care has been taken to assure the accuracy, completeness and reliability of the information contained herein, we make no warranty, express or implied, or assume any legal liability or responsibility for the accuracy, completeness, reliability or usefulness of any information, product, service or process disclosed. ALL RIGHTS RESERVED 2021