Another very poor performance from Asian equity markets rolled over into Europe and the U.S. All Asian markets lost between 1% – 3.5%. In Europe, FTSE was the best of a poor bunch, only losing 0.6%, whilst the DAX and CAC were both down over 2%. The U.S. fared no better with the DOW and […]

The general perception that Middle Eastern countries are flush with cash and deliberately try to keep oil down to harm Iran when it begins to sell is rather childish. Budgets rose and became bloated. Gasoline prices even rose in the United Arab Emirates (UAE). Dubai stocks fell to the lowest in more than two months, […]

QUESTION: It seems as though the rally in gold is short covering? If it is, and all bottoms start that way, why is this not the bottom? Always read your work with great interest. Yours truly, JB ANSWER: Major lows are always short-cover rallies, but they are much more dramatic. Here we had gold struggling to […]

China’s devaluation of the yuan has helped to complete the cycle for the bubble in government. One of the major repercussions of the turmoil caused by China’s currency move has been that investors are running for the flight to quality as we have warned. German 2yr bonds have hit new record lows with negative yields edging […]

The Chinese revaluation of yuan has unsettled Asian equity markets and the obvious spread across the globe. The Nikkei and Hang Seng were off 1.6 and 2.4% respectively, which rolled over into Europe. The recent performance in both the DAX and CAC finished today and became the worst performers — down around 3.6% each.  The U.S. market was also feeling the pressure with the […]

The old idea that inflation is created by an increase in money supply has distorted the minds of many people. Inflation is caused by numerous factors for it is not a one-dimensional aspect. For example, the current bird flu has rendered half of the egg production to be worthless, which has sent egg prices soaring. This has nothing […]

It appears that many people are married to the idea that the Fed creates INFLATION by expanding the money supply. Sorry, it does not work that way. Others confuse the fact that interest rate increases are bearish and declines are bullish. All you need to do is look at Japan to see that did not work […]

With the exception of the bond sell-off yesterday, the markets behaved reasonably well – even in thin summer trading. This comes after Federal Reserve Bank of Atlanta President Dennis Lockhart’s comments that the Fed is poised to raise rates. Today, we saw a mixed Asian session for equities with both the Nikkei and HSI ending with small gains (+0.45%) whilst the […]

As we approach the month-end closing for July 2015, we have a minor monthly bearish reversal at 1155 followed by the key reversal at 1084. The Bullish stands at 1287, so without a closing above that level, nothing has changed. Crude oil had a monthly bearish reversal at 5650 and 4667. We fell intraday to 4668, […]

To make a market peak in a phase transition, the 99% must be bullish. Likewise, to create the low, the 99% have to be bearish. This is simply the way markets function. Now we begin to see the bearishness rise in the precious metals because quite frankly, the gold promoters put out such total bullshit […]