Loading ...Back to the Future
I have been calling this the Scariest Chart on the Planet for a while now
It’s implications were of a huge deflationary even.
Who knew the catalyst would literally be the scariest event on the Planet.
A Virus !
But the chart was unambiguous as well as unbelievable.
And here it is coming to pass
You have to marvel at this one.
Simply incredible.
https://goldtadise.com/?p=455805
I mean, let’s be real, it looks like it is headed to 100, which is where it was when Nixon closed the gold window! The H&S projects to 125ish, but why stop there when such a historic level is spitting distance away?
That is absolutely insane and makes no sense whatsoever.
Adjusted for inflation, commodities have to be hitting lows not seen since the beginning of time, in all seriousness.
So much for money printing leading to commodity price inflation. It’s been the exact opposite. All liquidity has gone into equities to form bubbles, and when they pop, the credit crisis pulls down commodities which were already at multidecade lows. you’ve gotten the worst of all worlds being long commodities–none of the upside and all of the downside and more!
Sure at some point this will have to change, but we’ve literally been saying this for 10 years now. The unweighted commodity complex (GCC) hasn’t even made a higher high on the weekly chart in 10 years to keep the bears remotely honest. It’s been a one way ride this entire time.
Well said…exactly my sentiments
We had a lot of commodity bulls come out and pronounce the bottomz Inn in 2016
But this chart was showing that all we had was a retest of strong 40 year resistance
Then we built out a bear flag…it was crystal clear …and yet unbelievable at the same time.
I agree this is hard to believe, yet it is true. I view this as a strange counter intuitive phenomena, like the tide going far out to sea just before a tsunami comes in to wreak havoc.
I agree, there will likely be hell to pay on the other side of this in terms of shortages. To me, this was only possible with Central Bank coordination.
Liquidity simply cannot be allowed to flow into the sector as it would absolutely kill economies.
Not even a strong multiyear bounce to make bears think twice. That is simply not realistic market action.
I really was thinking that this February marked the top for $indu:$CRB, but the cynic in me thinks it will be taken out withing weeks to months.
yen to commodity ratio ($XJY:$CRB) looks like it is breaking out of a 30 year base! You could say the same thing about GSR. GSR would have a first target of at least 160-180, but lets just make it 200.
None of it makes any sense other than to say the Central Banks have absolutely succeeded in herding people into equities and bonds. You can’t fight the Fed!