Things are Heating UP
As the puzzle unfolds it may be time to look at what would appear to be baked into the cake. For us it is:
- Higher Short term interest rates,
- Flattening Yield Curve
- Declining Stock Market
And what sectors will be bounced around as all this unfolds as they have different prime drivers:
1. Long term 30 yr Bond Prices
2. Gold Prices (the intermittent fear factor)
3. Commodity (oil) prices
4. The Dollar, extremes over the past 2 years are in focus, 102.2 high area of December 2016, and January 2018 lows of 89.0 stand out as goal posts. Our recent sales at the 93.00 area are being negated.
What will occur is probably a 61.8 % Fibonacci bounce to 97.2 as the FED tightening continues.