The overall narrative is saying “recession” and “rate cuts”, with gold whispering something crazy in off in the corner. I mean, yet another new all-time high? I’m guessing the Chinese Oligarchs are saying “no” to property (30 year bubble POP) and equities (a 50% drop), and now (possibly) the dollar too. Gold is the exception, which the CCP is encouraging them to buy. CCP loves gold, while Google worships bitcoin. CCP also likes coal, oil, natural gas, and nuclear reactors, and promises to deal with “Climate Change” real soon now – i.e. never.
The energy rallies this week go against the “recession narrative” we have seen in the metals – especially copper, which made a new multi-month low. My guess: the energy rallies are about geopolitics.
To me, this week’s dead cat bounce is not entirely surprising; downtrends always have bounce-back rallies, especially at the start. “Buy the freaking dip” has made people tons of money for a long time. If I were writing the script, I’d suck the little people in with a bounce – maybe several of them – I’d sell, and then let prices move lower.
They say that during downtrends, you’re supposed to “sell the rallies.”
Are we in a downtrend? For sure if Cackles isn’t installed, “they” will want Weird Orange (or “Junior”) to inherit some kind of financial disaster. Narrative: “The markets made new all-time highs under Senile Joe! He was Sharp as a TACK!”
Who is running things right now, anyway?
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