Behind the Headlines

It would appear that the longs in the market are waiting for the stimulus, it has to happen, it is an election year.

But, looking Deeper

Something is happening at the core. Our Fed Influence chart is picking up on something. I am not sure what it is, but here are some guesses.

  1. Companies have adopted the view that we are coming out of the pandemic and are just having some cleanup problems, what if the market is getting the vibe that this is all wrong..
  2. Schools are opening, this unfortunately is putting the young people of our country into guinea pig status. The market may be seeing through this huge risk factor.
  3. The Bond and Gold market action this week may be signaling something, not that interest rates are headed high because of economic demand, or in gold’s case that the economic panic is over. It could be a deepening liquidity problem, that the Fed and Congress will find it physically impossible to fill all the holes.

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