The assumption of the hyperinflationists has been that governments will just print to meet their obligations. That theory is based upon revolutionary government who CANNOT SELL debt to anyone. In the case of the West, we issue debt and because of that, the first effort is to meet the demands of bond-holders. That is only […]

  The Dow Closed above 16660 and this now opens the door for a rally to test the 17000 level reaching a high perhaps on Thursday. We need the see a closing ABOVE at least 17010 to imply that the test of the Weekly Bearish Reversal that held at 15960 may hold. The major support […]

Politicians are just insane and Hungary illustrates how desperate governments can get. They are proposing to impose a new tax on Internet data transfers in the 2015 tax bill that was just submitted to parliament. This amazingly stupid move could devastate the Internet and telecoms providers as well. The draft tax code actually proposes a provision […]

  We rallied right up into Wednesday testing the convergence of overhead resistance and will now most likely return to retest support into Friday. The bulk of resistance stands at the 17000 level and support at 15960. This is the closing range of resistance and support. If this week proves to be the reaction high, […]

The rumors we were reporting on the street about the Hedge Funds appear to be true. They have been unable to see time as so often the case and have been hit with the worst losses in Industry’s history since 2011. This may indeed contribute to what we see with the postponement of the Phase […]

This coming Sunday will see the results of the ECB’s stress tests. Eagerly awaited by some, feared by others. Well it appears the only reason there was support for the European peripheral bond markets over the weekend was the fact that they were closed! From the opening this morning the trading theme was, “risk-off”. The talk […]

COMMENT: I just wanted to thank you for all your charts and explanations of what was taking place on the DOW this week.  I have been reading your work for the past five years and I appreciate that you make this available for everyone.  I am trying to understand what is coming our way and what […]

  So far so good. The low may hold and a closing above 16331 today will help to relieve the selling pressure. A closing above 16660 will signal that we may see a further upside into the week of 11/03. Keep in mind this is a bubble in government bonds – not equities. Shaking the […]

So far the Dow has held the previous day’s low and a higher close today will still point to a bounce into tomorrow, However, we are in the midst of a Pandemic of Uncertainty. This is becoming critical in Europe. While I am enjoying the weather here in Germany, the atmosphere is clearly uncertain spawning […]

  While those who advocated stocks in various institutions are being demoted and the bond bulls yell I told you so, as Melon famously said in the start of the 1929 Crash that Gentlemen Buy Bonds, what is really going on in the markets cannot be seen without looking at the cross-connections. Why? Sometimes you […]