I didn’t agree that the two markets will move together. I thought you were correct with the SQQQ, as posted yesterday I like PSQ. However, I didn’t agree about the metals declinning with stocks. I believe the metals have more to go before a correction. Just saw a post elsewhere. The only other time the QQQ was up 2% intraday making a new high before reversing and closing down 1% before doing it yesterday, was March 7, 2000! I hope we are in for at least a rhyme if not a repeat.
In 2000 the fed was not monetizing debt. No Quantitative easing. It was a theoretical construct that was taught in business school as a possibly but would never be done in the US. Our central bank balance sheet was about 334 billion. Now its somewhere between 7-10 trillion. The US treasury has bypassed the fed and now has its own trillion dollar cash kitty. I don’t think all of the things we have learned are worth much anymore because there is no more true price discovery.
While those shorts don’t seem to be panning out, there does seem to be a disturbance in the force though…TLT seems to have broken out…maybe topping soon….
I believe all asset classes will rise and fall together because they are denominated in Dollars which are becoming less valuable every day. Devalue the denominator and the numerator goes up.
We are creating magic money and China is doing the same. We are using our magic money to keep America American. The Chinese are creating magic money and trying to buy America. So, we have, if you will excuse the pun, a money printing GAP.
All interesting thoughts and points. Agree no real price discovery, but was it ever real price discovery. Yes, the FED throws it’s weight around but they always have just did so more quietly except when needed to go public. The dollar amounts are so much more but so are the number of shares, market caps, bonds outstanding etc. So we still have the charts and technical analysis and that still works. We know they are distorting the markets but whatever they do still shows up on the charts.
The powerful charts you guys post slayed me…
LoL 🙂
Kenny Rogers would approve
I didn’t agree that the two markets will move together. I thought you were correct with the SQQQ, as posted yesterday I like PSQ. However, I didn’t agree about the metals declinning with stocks. I believe the metals have more to go before a correction. Just saw a post elsewhere. The only other time the QQQ was up 2% intraday making a new high before reversing and closing down 1% before doing it yesterday, was March 7, 2000! I hope we are in for at least a rhyme if not a repeat.
In 2000 the fed was not monetizing debt. No Quantitative easing. It was a theoretical construct that was taught in business school as a possibly but would never be done in the US. Our central bank balance sheet was about 334 billion. Now its somewhere between 7-10 trillion. The US treasury has bypassed the fed and now has its own trillion dollar cash kitty. I don’t think all of the things we have learned are worth much anymore because there is no more true price discovery.
YES!
While those shorts don’t seem to be panning out, there does seem to be a disturbance in the force though…TLT seems to have broken out…maybe topping soon….
https://goldtadise.com/?attachment_id=469532
Where TLT goes so does gold.
I believe all asset classes will rise and fall together because they are denominated in Dollars which are becoming less valuable every day. Devalue the denominator and the numerator goes up.
We are creating magic money and China is doing the same. We are using our magic money to keep America American. The Chinese are creating magic money and trying to buy America. So, we have, if you will excuse the pun, a money printing GAP.
All interesting thoughts and points. Agree no real price discovery, but was it ever real price discovery. Yes, the FED throws it’s weight around but they always have just did so more quietly except when needed to go public. The dollar amounts are so much more but so are the number of shares, market caps, bonds outstanding etc. So we still have the charts and technical analysis and that still works. We know they are distorting the markets but whatever they do still shows up on the charts.