Last week, I thought gold and NUGT would rise, and it did, but not impressed with the move, and it looks likely to fail. I am staying away from it this week.
SPY is being capped pretty hard by the 161 fib line from the 09 bottom and it is trading back and forth in a range, and now a wedge. Friday was interesting as 40 points from Thursday's high evaporated like it was nothing. Any real selling could cause some grief for the markets.
I don't know about you, but does anybody believe that the Fed will raise interest rates anytime in the near or far future? We are triple zero; rates, wages, and GDP. I think the Fed is out of bullets, and the Govt is stuck as there is no way the Republicans are going to allow pump priming going into a national election. Plus, I seriously doubt the Fed will allow the politicians to paint a bogey on their back blaming them for the economy due to rate increases.
Therefore we will see input costs continue to collapse, and I am pretty sure we will see thirty year no cost mortgages in the twos before the next elections.
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Ok, here are a few charts, enjoy.