Happy New Year
A few charts to boot
Well we are quite sure many are glad to see 2020 gone all things considered. However we are going to take an optimistic point of view, one that would rather say things could have gone a whole lot worse. Anyway in regards to the trading markets world, let’s just say many fundamentalists will never be the same, in fact if one were plainly oblivious to reality and we showed them this chart and then asked where they suspected the SP500 return would be considering the data well we are certain they would say, not positive on the year:
Obviously, 20m plus still on the rolls isn’t good for main street America, however the equity markets took all the QE in stride as they always do. Which brings us to the next chart of the Nasdaq future:
Many readers have seen us show this long term linear up trend channel, well let’s just say the start of the new year will either accelerate the bust out, or revert it right back into its due course. As far as a risk vs reward trading location, well, you decide, but we would rather opt and err on the side of patience.
Next up is the US Govt 10YR which is also at a critical point. We know that the 1% marker is key psychologically, but the 50eMA is right at 0.97% and we would suspect any further probes north will be bought into by many accounts. Those calling for organic inflation to rain on the bond parade…well good luck with that!
Next up is Silver which has had an excellent year, well it wasn’t looking so hot in March when spec and CBank panic drove it down < $12 but since then up a whopping 120% from there. We are inclined to think $30 will give away next year, but we would hope we get a crack at $19 again first!
Finally we leave you this new year with Bitcoin, which has firmly turned even the likes of JPM’s (Jaime Dimon) who was an early hater of the concept, now of course since there’s money to be made, he’s dipping in. Anyway Bitcoin has had another epic run, but long time followers know we preach risk adversity and patience with this as every single run up has come with a heavy dose of down turn. Will this time be different, well it rarely is, so adult swim only here and wait for cheaper levels. We highlight the $13380 level as this is our long term key now:
That’s it, Happy New Year and we hope you enjoy yourselves and breathe a very big sigh of relief that a new year is upon us. Thank you for sharing our work, thank you for supporting our work and we hope you will continue to do so in 2021! Happy New Year!
-Magnelibra’s Econemotion
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