Silver Posting Big Day plus Bitcoin and More

Quick Update

Alright, so its a Friday before a long weekend given that it’s CColumbus Day in US on Monday. Back when school was normal this would be a notorious long weekend getaway for everyone, but since we live in the upside/down now well its seems there are no clear agenda’s and certainly much less planning going on.

Anyway the initial market trade today was a bullish one and we warned yesterday that a rising central bank tide lifts all boats and we are curious to see how the bonds and US Dollar react to this. If today is any indication it seems that the stimulus will eventually lead many to believe equities will make a run to new highs and that just might be the case, however nothing comes without sacrifice. In this case the US Dollar and US Bond Yields may move in a way that could adversely offset any equity strength and its truly the real reason why the Central Banks are caught between a rock and a hard place.

As we have noted many times before that there isn’t enough liquidity to monetize everything, to allow for those smart enough to take profits to all sell at once. So central banks need to coordinate and limit such action as best as they can. If the concentration of wealth hasn’t become obvious by now, well wake up, its here and its why the Socialists on the Left even have a voice in the first place, because these policies lead to massive wealth inequities and we have noted that in many of our updates before.

Before we get into the markets we also have to give credit where credit is due. Yes we are highly critical of the lassaiz -faire central bank economic policy but there are always winners and losers and in this case, we have to say housing is winning out right now and rightfully so, take a look at these charts:

This last chart is for those that think housing is a bubble once again and comparable to 2006/7 well, its not and as you can see we are merely working our way back up again and all of this can be thanks to ultra low and negative real rates. Now we all know debtors love real low rates, (at the expense of savers earning risk free right?) although you wouldn’t notice that rate especially if you are sub sterling credit as the spreads between what the banks, especially on the CCard side of things, charge and what their cost of credit is as those spreads are at wider than normal levels. Well we all know the banks need to keep those spreads wide, i.e profits and protection. But nevertheless, the housing market has been a clear beneficiary even amidst a global pseudo-pandemic.

Ok onto the markets and once again, Bitcoin is on our radar as it has toppled the $11k mark once again. You see readers you can print debt/fiat ad infinitum but there will be assets that will discount them, many don’t believe Bitcoin is one of those, yet we have followed this since inception and don’t be fooled, decentralized immutable anything scares the hell out of the shadow banking and central banking systems. Nobody likes to give up power and certainly nobody likes to be held accountable for inexcusable action and that is why Bitcoin is the cleanser, it is P2P utility, value transferring frictionless transacting at its finest. Here is the chart and rest assure if $11500 is overtaken it will try to attempt a run at $13800 and we feel time is the only thing in the way of that:

Another discounting asset is Silver and today its up >5% as the bulls have reasserted control:

Even the Pound Sterling has gotten into bullish action, although we do feel that this 130/131 area is formidable and it would take some consistent consolidation here to get us all bulled up as you can see our resistance band from 130-50 to 133-00:

Finally the equities are also up today with the SP500 up some 30 handles trading 3468 and on target to hit the reversal are of 3501 next week:

Ok that’s it, we will post the settlements at the end of the day. Till next time…think out of the box, think with your gut not your mind and trust your instincts and remember its better to be lucky than smart sometimes, so don’t push things to fit, if its right it will all just come together naturally, cheers!

Please share our work and subscribe if you haven’t already, we have a free tier, a 2 latte a month style and a Founders which has access to our Global Futures Benchmark Program positions tracker daily. We hope you enjoy our work and we hope you continue to support us.

-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. All rights are reserved. 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.