Interlude in the Macro’s Here
For whatever reason the three markets where the Macro’s are Bullish, Stocks, Bonds, and the Dollar are all showing signs of wearing out. As we mentioned last week, we exited our long T-bond position, and we are seeing the dollar bouncing against a significant resistance area.
The Bearish Macros, Oil, Commodities, and Gold are seeming to come to life a little here but the deflation macro’s are strongly in place.
So what are we looking for here? Maybe a little interlude, but the snake in the wood pile remains the huge amount of funny money that is sitting in paper assets. The exit chaos has not begun yet. It seems like a hollow warning as this has gone on for so long. The fact that the Central Bankers of the world have climbed onto the Bernanke strategy that has not helped the underlying economy, just papered it over with moving money to the top of the pyramid, will now be seen for what it is, all around the world.