As this screwed up nation inflates its way out of its economic problems (COVID-19 was a trigger, not a cause) amid the realization by more and more people that there’s a really tacky made for reality Tee-Vee fascist in the White House you have the stock market on message, rising in devalued (funny) munny units as the reflation tries to take hold.
With this the FOMOs (man & machine) are playing catch-up to the play we’ve been on all along (for example, the NAAIM investment managers reading was fomo’ing at the mouth in full chase mode last week. These trend followers are sure to be gulping down stocks again this week.
And then there is Uncle Buck, the cheap parlor trick being used by Trump and the taxpayer-backed, Treasury-backed Fed. We are going to pay the price either by rising long-term interest rates, rising tax rates or likely, both. If the reflation is ‘successful’ the US dollar will lose this last ditch support level at 97.65 and waterfall to the marker we’ve noted every single week in NFTRH since it was printed in March; that lower low to the 2019 low.
So far these pigs are succeeding in compromising the currency, cheapening the munny units and driving asset prices. The majority will not see the cheap trick for what it is until it’s too late to do anything about it. The majority – including many financial professionals apparently – are still trying to make sense of the wondrous stock rally that will not end.
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