Shelton Shunned + BTC
Plus Charts
Today we saw the US Senate Republicans block President Trump's controversial Federal Reserve Board nominee, Judy Shelton. Well we don’t see her as controversial but many in media will paint it that way. Shelton is an open critic of the Federal Reserve, fiat expansion, FDIC and an outspoken hard money advocate. We would love to see her on the FOMC and she would be a welcomed level headed thinker as opposed to a QE loving monetarist whose only tool in the toolkit seems to be Quantitative Easing. If there is a problem, we print, if there is a problem we make it cheaper to speculate, we make it cheaper to leverage, we make it cheaper and cheaper and keep the status quo of a system that is designed to destroy purchasing power.
Alright enough complaining, we will see what the future holds, as if Covid, the Election weren’t enough…so without much going on in the markets as the bonds have bounced, the equities have bounced, FX has bounced, we truly don’t have much to add in terms of analytics. In fact the charts outside of Bitcoin are kind of boring. So here let’s toss the Bitcoin chart up first:
Bitcoin held the important $16125 and its led to a $2k advance and for now, we are still bulls unless we bail back below that $16k level.
The Ultra Long Bond has bounced pretty well and continues to take the trend channel route with 218-00 above as resistance:
When we look at the equities we can see that the SP500 has spent the greater part of the last week climbing back that massive hammer from early last week:
We had a founding subscriber ask about Fibs and how we use them and how we choose which low and high to use. Well we don’t complicate it, in fact all we have is recent action, past action and current action. We prefer to take the most recent set of highs and lows as our parameters. This SP500 chart is a great example as we use the most recent low (3225) and the hammer high (3668) from there we know the algos and the other techs will be doing the same and thus, the self fulfilling levels become real, become actionable and become a focal point for our chaos. Now like any art, which trading most certainly is, we have to stay dynamic, we can’t always think with static linearity. That kind of thought process will get one in trouble! So its an art, its a process and we welcome any and all questions.
Finally the Nasdaq:
The NQ is traversing our linear long term channel and sits smack in the middle, so if you are wondering why we have been quiet, its because the markets are quiet and we don’t want to waste anyone’s valuable time.
Alright we will post the settles and an GFBP Update later tonight, we thank you for your continued support!
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-Magnelibra Econemotions
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