Old Habits Are Hard to Break
Technical Charts
Alright it was a nice long holiday weekend and we hope that our readers took time to reflect, spend time with family and enjoy the things that truly matter in life! Before we get into any analysis or chart work we would like to start this note off on a more scientific note, where veteran observers of our Sun have shown UV AB rays in North America hitting 12+. This type of reading is more akin to summer peak levels and as always, when things like this occur, we have to take notice. For those that don’t know what UV (Ultra-Violet) is, well start researching because we are moving into a solar maximum and the skies will be changing. Furthermore we have had consecutive days of large solar flares with the one yesterday being of the “X” class variety with some nice SDO satellite pics here:
Then the CME blast follows:
These are what produce those beautiful Auroras, however this beauty has a price and each one of these CMEs tests the veracity of our earths Magnetosphere which is waning quickly. We don’t think enough attention is being paid to this and its why we follow it closely. A large enough CME could wipe out electrical grids and render them useless for days. Now imagine a city like NY or LA without any power for a few days…
This stuff is important and does effect us all as we are all electromagnetic beings and the Sun is directly correlated to our heart rhythms and high UV days should be avoided by those with any types of heart conditions. There is plenty of research on this and we believe more will be forthcoming. As to that thought that humans have any inference on climate change…well the Sun dictates all, where humans can improve is on pollution, that’s the real problem…
Ok onto the markets where we continue to see the FED scared as hell to reduce their balance sheet, as this chart clearly suggests, QT hasn’t even begun…
So if the FED can’t even begin a program of balance sheet reduction, what makes anyone believe they can alleviate this headwind:
Tightening in this environment would be the antithesis of every past event that this chart marked? We are perplexed and the new question becomes, does monetary expansion and asset concentration of wealth matter more than controlling inflation and driving a bad situation into a much worse one?
Not to mention this chart:
So there we have it, the FED can play 3 card Monte shell games with the general public and pretend it has any other weapons than a printing machine, or it can get serious and punish asset holders and speculators (cough, cough).
We need real change, we need real regulatory and monetary policy, not one that condones and concentrates excessive risk taking and concentration of wealth rentier policies. The cost and pain to the general public is becoming apparent and when you allow for such accumulation and disparity in wealth and income, well you eventually get the pitch forks and torches…
Now if regime change is real and we are in a new paradigm then the winners of the past will be the losers of the future as reallocation and dispersion as opposed to concentration of risk becomes evident. BofA put out an excellent chart here and its a thesis we are fully on board with:
Ok on to the charts, first up Bitcoin which is holding below the $42k level which means lower price probes are probable:
Next up the SP500 where 4320 is next key level:
As the title of this post denotes, “Old habits die hard” the tech titans and all their buy and hold stay long are about to be tested and better to sell on the highs then being forced to sell lower no? Google isn’t quite 20% off its highs but this set up is not bullish by any means:
Has anyone noticed Natural Gas lately??? We have and we have yet to hear of any big funds blowing out yet trying to risk arb and short this thing…but we suspect there are a few hiding in the weeds. We have been warning about the complacency in regards to the power Russia holds in this regard and now we are seeing it all transpire, good thing winter is nearly over:
As far as our overall bond market outlook it seems as if inversion in the US Yield Curves has taken a breather and some accounts have begun discounting the future and veracity of the rate hiking. We would rather suspect that the bond market sees the ineptitude of the Federal Reserve and realizes that they are impotent in real matters and have only one tool in their tool box…QE:
Alright, that’s it, we hope you enjoyed todays post, please share with someone and spread our word. We feel the Econemotions community is a unique one and that we present things in a very different way and someone may enjoy these perspectives.
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