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