In case there are one or two naive souls out there who don’t think the equity markets are completely controlled by the central bankers, look no farther than precious metals. They have been in a full-on bear market for seven years. Seven. YEARS. What’s the longest equities have been allowed to fall in the past few years? A week. That’s all the powers that be can take.
Incredibly, even though yesterday we were down, we’re actually red at the moment I’m typing this too. So – maybe two days could get under our belt! Who knows. But if things are permitted to slip a little, the measured target seems to be just above 2870.
Far more important than this chart, however, is someone more powerful than the central banks, more persuasive than the powers that be. And, thank the heavens, he is (for the first time I can ever remember) expressly SHUNNING being short equities, as he considers it “unwise.” (Although, in a form of literary jujitsu, he also cautions against adding to positions or, even more so, buying new positions… as if those actions are at all different).
Trade accordingly.
