ridethepig | Gold Market Commentary 2020.06.23
Updated
📌 Surrendering the resistance
=> Buyers taking the highs here would be unpleasant for any bears e.g those betting on the double top and everything is roses on the risk and economy front. From a timing perspective, with witching cleared and value Quarterly/Monthly end rebalancing underway we can be comfortable with the link to Gold.
In this position which has now arisen, buyers can, after dips continue adding longs.
Since after the covid demobilisation we can expect a sovereign debt crisis. For that to happen the following conditions have to be met:
"Protectionism is a serious error. There is no yellow brick road to success with protectionism, and it is no surprise the US via media manipulation have the masses deluded. This is a necessary component to the makeup of the next economic cycle ; but it must be in balance, any overshoots or undershoots will destroy the effectiveness in manipulation.
Those with a background in fixed income will know alarm bells are ringing louder than usual in bond markets with wages ticking higher than mortgage rates. This is not sustainable and when danger threatens and the crowd does not smell it, don't stand like a sheep, rather run like a deer.
This constellation gives rise to the most interesting of struggles for long end bonds. I would like to offer a final way to track the destruction and recommend to keep on maximum alert. Let us wrap this up with a diagram:
As usual thanks for keeping the feedback rolling, whether its 👍or 👎!
=> Buyers taking the highs here would be unpleasant for any bears e.g those betting on the double top and everything is roses on the risk and economy front. From a timing perspective, with witching cleared and value Quarterly/Monthly end rebalancing underway we can be comfortable with the link to Gold.
In this position which has now arisen, buyers can, after dips continue adding longs.
Since after the covid demobilisation we can expect a sovereign debt crisis. For that to happen the following conditions have to be met:
"Protectionism is a serious error. There is no yellow brick road to success with protectionism, and it is no surprise the US via media manipulation have the masses deluded. This is a necessary component to the makeup of the next economic cycle ; but it must be in balance, any overshoots or undershoots will destroy the effectiveness in manipulation.
Those with a background in fixed income will know alarm bells are ringing louder than usual in bond markets with wages ticking higher than mortgage rates. This is not sustainable and when danger threatens and the crowd does not smell it, don't stand like a sheep, rather run like a deer.
This constellation gives rise to the most interesting of struggles for long end bonds. I would like to offer a final way to track the destruction and recommend to keep on maximum alert. Let us wrap this up with a diagram:
As usual thanks for keeping the feedback rolling, whether its 👍or 👎!
Note
Flawless... Well done bulls.
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