That’s About It…

My post of a few days ago, on April 21st, is probably all one needs to think about for the rest of this year, it has the basics, a hot government debt increase based market, and the mid-term battle being run out of Washington.

How does one treat a market like this. To me the first thing, is that this will not end well for the markets, the second thing is you have not seen anything yet on the upside. If you want to review crazy, take a look at the silver market this year, from the high of the 2021 Covid pandemic period to this year’s high, Silver went up 4X. The Gold market which is habituated by the more serious central bank crowd went up 2.8X. I mention this because one should probably think in terms of this crazed market, the current S&P 500 going up 2X from the 4818 Covid high or 9600 area. Markets like this have a lot of volatility at the end. To me the current stock market is at a stage equivalent to the November 2025 period in Silver, kind of the level where economics based hedging dominates before the up move takes off.

The sad part of this story is that real long term historical support is around 2100 on the S&P 500, the highs before the Trump era started in 2016.

A little update at 1:00 PM CDT.

Today’s market action is an example of the effects of economics-based hedging that we mentioned earlier today. The effect on the current pattern is to compress RSI readings and prime the pump. This could go on for a few days as recent breakout levels are tested.