Equity Markets Enjoying so-called American Spring - What technical studies are saying about Gold
Snippet from December 8, 2016 Pivotal Events
The intriguing headline is about the central banker observing that the market is on the “cusp” of a rise in interest rates. Following the exceptional technical excesses clocked in June, long rates have been rising. Also since then, short rates such as Libor have also been increasing.
Perhaps, the official is indicating that the Fed has no alternative but to follow the increase in market rates with an increase in the administered rate. No surprises, as typically the Fed follows the market by many months. Also, most government institutions will be hostile to Trump. The Fed could raise rates to “get even”.
Too many commentators out there still believe that the market rise is discounting the Fed change. Pathetic. It’s been forcing the Fed’s hand. When the market reversed, we did not bother to provide a rational. Rates would just go up.
In retrospect, it’s been associated with a turn to positive attitudes. Which in turn includes the electoral win by the popular uprising. A distinctly pro-business administration is a big positive. As we have been noting, this is early in another Great Reformation which will reform yet another tedious experiment in unlimited government.
Very good stuff, but how much is in the market?
Mister Technical can advise us.
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