Sunday, August 15, 2021

#USStocks Review #ES_F $SPY

US Stocks Review
Those that view the message of the market on a daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bag holders of trend transitions.

The global economy and stocks began behaving strangely in late summer of 2019. Repo rates spiked unexpectedly. Few acknowledged it. Anyone looking for a return to "normal" market by fundamentals will likely be disappointed in the coming years.

Stocks crashed in early 2020. Relative performance within the stock market suggests a reallocation of resources away from old to new economic plays. The old norm of "Made in USA" is not coming back. Manufacturing, design, and information collection will be borderless. Citizens will struggle to maintain their liberties and rights without oversight and intervention under this economic backdrop.

Rising stocks as the global and certain market groups decline is a real possibility that has been discussed for years. The stock market's distortion of reality is being attributed to the Federal Reserve. The Fed, contrary to popular opinion, is not that powerful. It cannot control the world's capital flows. The invisible hand, the true driver of market and trends, is redefining the world as the core economy passes from North American to Asia.


Eric, Great post this morning on what happened to gold yesterday and how confidence ties into all this. I'm learning something new everyday. With the potential chaos happening, does it feel like we could end up in a complete stock market crash? How can the US economy support all these people coming in while spending trillions of dollars that we dont have? Being in my early 30's do you think moving assets and investments into something much safer like bonds and other things should be something to consider in the future? Keep up the great work and reviews, the MAtrix and EOT is a game changer.

The public sector is not safe. The US bond market will be 'safer' than the rest of the world, possibly a little while longer, but the invisible hand will target it for destruction soon.

Yes, the stock market could crash, but it's also rising today not because the global economy is booming but rather the invisible hand doesn't want to park in bonds longer term. It knows an implosion is coming. The US Stock Review - Timing A Correction (or Worse) discusses the risks.

The invisible hand recognizes the risks and is moving off the "grid" at a rapid pace. Collectibles, markets from art to baseball cards, are on fire for a reason.

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