Amigo #2 In Gear, Joining Amigos 1 & 3?

Amigo #2 made a big pop today and as such continues to rise with #s 1 (Stocks vs. Gold) and 3 (the 10-2 yield curve).

Amigo #2 is actually a 2-headed Amigo. He’s the 10yr & 30yr yield Amigo. His 10yr head is bullish…

tnx

…and targets 2.9% (EMA 140), which will be its limiter or gateway to a Crack Up Boom. Problem here is that the EMA 110 (2.6%) has also been known to limit moves. So that’s a consideration too.

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The 30yr head has been more obstinate and is still neutral. But today it took a big jump.

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It would target 3.3% if it goes bullish. At that point the dapper gentleman at the lower left is going to get his first big test. He’s either going to oversee a breakout into an inflationary Crack Up or a failure at yet another red arrow. You know, the ones in play for decades?

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The Trump administration is busily layering fiscally promoted inflation on top of the inflation promoted by the two most recent mugs on the chart above. 9 years worth of monetary policy driven inflation that has blown today’s epic asset bubble.

If you are not engaged and/or in full geek mode with this market you either don’t have a pulse or you are just not that into it and never will be. We are coming upon a most interesting and crucial juncture (measured in months or for all I know, even a year or more).

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