Must Watch Martin Armstrong Interview
We wanted to start this note off with a link to a video that was on the YouTube page called Big Picture with James Patrick. This is absolutely by far the best information one can truly absorb and reflect upon for today’s current market environment that we find ourselves in. This is a must watch for everyone that wants to understand where we are and where we may be going. We have followed Armstrong Economics for 2 decades and we believe MArmstrong is one of the best minds in the industry, here is the link, Martin Armstrong w James Patrick of Big Picture
We know you will find it very interesting and very informative, an hour or so well spent, we assure you.
We also wanted to share a few charts, first up, let’s look at the Central Bank liquidity vs the Nasdaq performance:
We see one of two scenarios, either the Nasdaq will drop about 20% to meet this G3 balance sheet line or we get another Covid type event and the G3 will go Brrr and jam even more QE down everyone’s throats. With inflation where it is, we will most likely opt for the first scenario as the most likely!
To follow this up BofA did a nice job of highlighting just how much of the overall global QE has found its way into US equities at the expense of say, the Hang Seng and other EM and DMs. Once again, when people talk about dethroning the US Dollar…charts like this tell you all you need to know to rebut that sad theory!
Alright, we will just wrap it up with our trackers, first up the Settlements from Friday:
Equities were lower but managed to see decent buying most of late morning through the afternoon. As far as the MEGA8s, they saw some buying across the complex but Nvidia was the clear loser on the day. We will cover that 9/1 option below 0.20 and add another strike should we exit this current hedge:
As far as the GFBP, we are very close to going all flat on the month and will do so on a breach of -1% further from this current point. We will keep you updated:
Ok nothing from our sentiment has changed, we view the deteriorating fundamentals as the driving force for the next 6 to 12 months and we will continue to expect US equities to see greater sell side flows on any up ticks. This week is pivotal for the both the bulls and bears. As far as that goes, we expect the Bulls to try to break the Nasdaq 15500 area and the Bears to push below 14600 for further confirmation. Ok we thank you for your continued support, stay safe, stay healthy and stay informed. We are hearing whispers of further mask mandates in a few areas and isn’t that convenient just in time for 2024 elections…amazing isn’t it?
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