All Empires Versus Free-Floating Markets: HUMAN NATURE
FUNDAMENTALS:
An old sage's students once said about his own potential revolution, "Oh lord, when did we ever see you hungry or thirsty or a foreigner or naked or sick or in prison, and we would not help you?’ The king will reply, ‘I tell you this, whenever you refused to help one of these least important ones, you refused to help me.’" (Matthew 24:38-40, DNT) This is the story of the USA from the beginning of its "Manifest Destiny", to the African Americans that were economically polarized and left to tie their own bootstraps and pushed to the brink of poverty in the continual institutional treatment of its own citizenry to this day. America could have been great if it united all as one and went beyond colored lines, yet every presidency in every era failed to destroy this potential demarcation in their hearts and minds; action speaks louder than laws and words. This lack of unity is the undoing of its own economy.
And, this is what makes it such a great and profitable opportunity! All emotions aside! It there becomes unity one day from this destress, that will also be a different profitable opportunity.
We are witnessing a global power shift in our lifetimes from West to East, and it is inevitable. One source of the problems is because the West continues to pride itself on human division. The strong US economy became weak around 2018. From the year 2017, I have been writing about the global power shift from West to East. I have been writing about the weakness of the US economy since the 2019 trade wars; however, there was a missing catalyst. And that catalyst has come. It is the unexpected pandemic has been engulfed the US unprepared and yet overly complacent to respond effectively. This is human nature and this is also why traders can make a living in the markets. It is our duty to exploit this treasure.
So, it is time for work! In the world of finance, who controls the price action of free-floating markets; is it kings, emperors, warlords, presidents the central banks or the constituents of the Mr Market itself?
As currency traders, in a market-driven economy, it is our job to bring presidents and central banks back home to reality; to correct misalignments of overly confident empires that have over-exhausted and over-extended their abilities; to destroy countries and build them back up again! It is the market that always wins in the end, and that is something no president, no ruler, no empire, no one will all power can change. And this is something for us! We can blindly ignore all politicians, all central banks whose guidance in monetary policy and fiscal policy are collide with reality.
It is possible that this is not only the beginning of a recession, but the brink of a depression. Are we not the less patriotic if one does not does their job to prevent a collapse? Even if all currency traders or equity players of a certain economy do not do their job, their is a world outside of their economy ready to engulf them and correct the misalignment and snatch the money away. There is no escape. In the end, real economic power in a free-floating merket is not in a president's hands, but the ones that control the money, the traders, the central bank and the markets.
Yet, we remember that there is no trade so great, no trade so mighty to be called the ultimate trade for all time.
Yield Spread, Unemployment, S&P500 index:
The yield spread, unemployment, and the stock market has not only healed but expanded from the year 2008 - 2017. Then, it started to slow down. A 11 year run! This year will indeed market year of the height of the economic global shift from the West to the East. And the sign shall be whether or not this recession, exacerbated by the COVID-19 pandemic, turns into a depression. All signs for a recession have been marked and checked in previous posts.
YIELD SPREAD:
UNEMPLOYMENT and S&P500:
TECHNICALS:
If the checks of the fundamentals above are correct, then looking at the S&P500, there could be a 4 year fall to 2100 to 1000. There is also a possibility that the price of the S&P500 just goes side ways for 4 years.
TARGETS:
2100, 1800, 1400 and 700.
An old sage's students once said about his own potential revolution, "Oh lord, when did we ever see you hungry or thirsty or a foreigner or naked or sick or in prison, and we would not help you?’ The king will reply, ‘I tell you this, whenever you refused to help one of these least important ones, you refused to help me.’" (Matthew 24:38-40, DNT) This is the story of the USA from the beginning of its "Manifest Destiny", to the African Americans that were economically polarized and left to tie their own bootstraps and pushed to the brink of poverty in the continual institutional treatment of its own citizenry to this day. America could have been great if it united all as one and went beyond colored lines, yet every presidency in every era failed to destroy this potential demarcation in their hearts and minds; action speaks louder than laws and words. This lack of unity is the undoing of its own economy.
And, this is what makes it such a great and profitable opportunity! All emotions aside! It there becomes unity one day from this destress, that will also be a different profitable opportunity.
We are witnessing a global power shift in our lifetimes from West to East, and it is inevitable. One source of the problems is because the West continues to pride itself on human division. The strong US economy became weak around 2018. From the year 2017, I have been writing about the global power shift from West to East. I have been writing about the weakness of the US economy since the 2019 trade wars; however, there was a missing catalyst. And that catalyst has come. It is the unexpected pandemic has been engulfed the US unprepared and yet overly complacent to respond effectively. This is human nature and this is also why traders can make a living in the markets. It is our duty to exploit this treasure.
So, it is time for work! In the world of finance, who controls the price action of free-floating markets; is it kings, emperors, warlords, presidents the central banks or the constituents of the Mr Market itself?
As currency traders, in a market-driven economy, it is our job to bring presidents and central banks back home to reality; to correct misalignments of overly confident empires that have over-exhausted and over-extended their abilities; to destroy countries and build them back up again! It is the market that always wins in the end, and that is something no president, no ruler, no empire, no one will all power can change. And this is something for us! We can blindly ignore all politicians, all central banks whose guidance in monetary policy and fiscal policy are collide with reality.
It is possible that this is not only the beginning of a recession, but the brink of a depression. Are we not the less patriotic if one does not does their job to prevent a collapse? Even if all currency traders or equity players of a certain economy do not do their job, their is a world outside of their economy ready to engulf them and correct the misalignment and snatch the money away. There is no escape. In the end, real economic power in a free-floating merket is not in a president's hands, but the ones that control the money, the traders, the central bank and the markets.
Yet, we remember that there is no trade so great, no trade so mighty to be called the ultimate trade for all time.
Yield Spread, Unemployment, S&P500 index:
The yield spread, unemployment, and the stock market has not only healed but expanded from the year 2008 - 2017. Then, it started to slow down. A 11 year run! This year will indeed market year of the height of the economic global shift from the West to the East. And the sign shall be whether or not this recession, exacerbated by the COVID-19 pandemic, turns into a depression. All signs for a recession have been marked and checked in previous posts.
YIELD SPREAD:
UNEMPLOYMENT and S&P500:
TECHNICALS:
If the checks of the fundamentals above are correct, then looking at the S&P500, there could be a 4 year fall to 2100 to 1000. There is also a possibility that the price of the S&P500 just goes side ways for 4 years.
TARGETS:
Comment:
Trade active:
It is time...
Capturing the swings of the stock market & currency market. It's a dirty job and equity/currency traders must do it.
Volume does not support this rally: