More talk of Deflation


For the past few years we have pounded the desk concerning deflation risk.  In the meantime the FED became like the Pied Piper and now has a whole flock of investors following it.

Maybe an outside source of deflation talk will make sense.

Our market screen seen below shows how the players in the US markets are heavily loaded towards long US stocks, short US T-Bonds, and short the Dollar.  Watching this scenario unravel should be interesting. 

At the moment our S&P Computer model is the only aspect which is picking up the underlying conditions and it has paid a little entry cost in following that signal. The NAV is down 4.3 % since the EGII Tracking Fund opened on 2/12/14 using a 2:1 leverage ratio on its position.

For the casual market observer it would appear from the charts that it would take three closes bel0w 1849 to trigger anything decisive.

Mrcy 3-11-14

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