Reality Check!Long gone are economic data which should be bullish for stock markets and instead have become bearish, yesterday's jobs number was too strong, lesser chance of rate cuts this year...it's all about the debt and managing this enormous pile of borrowing binge...the reality check is approaching fast.
The Fed has of course trapped itself, buying of all securities for many years to suppress interest rates artificially....keeping the party and economic spending swinging far too long. Their unwinding of assets is increasing, causing long term rates to rise...no meaningful cuts will eventuate until markets crash or collapse...economic chaos.
Friday saw the selloff that was coming, confidence is high that 40K will be the next target...we sell the rallies.
What took months to rally, can be taken out in a few weeks...there is no bait to buy this market...hold short.
We are likely in the early throes of a wave 3 down, serious selling will come...late bulls will attempt to slow the decline and believe in a bargain.
Gold is extremely close to confirming a solid buy signal confirmation, if gold can rise and close higher on Monday, that is your green light for a strong move upwards in the early stages.
Whatever reasoning you read or hear about gold rise, ignore it and just buy the precious metals, silver is grossly undervalued.
Debt is the calamity that implodes gold into the sky...Bitcoin's bull run looks tired for now, a rotation back into PM's.
Summing up: hold short the Dow, buy gold!
Appreciate a thumbs, good trading and God Bless you all!