As expected on Friday we had a nice rally yesterday. It may be all the rally we will have or it could be followed by first down and then up. Since the volume has been lacking in the last two days, the rally may not continue much higher and in fact most stocks are ready to go down to new lows for the year and eventually below October lows. The markets are being kept up by Central Banks in USA, Japan, Euro zone and now China announced its on money printing program on Monday.
No matter how much money the Central Banks print, it cannot stop the deflationary forces. This deflation is due to shrinking in Credit and lack of new loans.
Whenever any company or individual, city or state declares bankruptcy, the amount of credit goes down and deflation takes over. This is what happened up during the housing crisis of 2006 to 2008. A whole bunch of housing inventory is still under water.
Gold an Silver may be ready to move up again after some consolidation recently. Oil and Natural Gas will continue to go lower because of excessive supplies.
SPY
DJI
IWM
GDX
NUGT Going Higher
ERX Going To New Lows
ERY Going Higher
DGAZ Going Higher
No matter how much money the Central Banks print, it cannot stop the deflationary forces. This deflation is due to shrinking in Credit and lack of new loans.
Whenever any company or individual, city or state declares bankruptcy, the amount of credit goes down and deflation takes over. This is what happened up during the housing crisis of 2006 to 2008. A whole bunch of housing inventory is still under water.
Gold an Silver may be ready to move up again after some consolidation recently. Oil and Natural Gas will continue to go lower because of excessive supplies.
SPY
XLE Going Lower
XLE
Posts
0 comments :
Post a Comment