Make Way for Uncle Buck

This chart was included in NFTRH 626 not to make a point, but to put visual proof to a point we’ve been making since the monetary policy response to the COVID-crash. What thing looks like the (inverse of) the other thing?

spx and us dollar

Well, below is a chart of Uncle Buck live this morning. The first bounce target was 94.65, which was put in the books before a new pullback to test the lows. The stock market bounced, but as we’ve been noting lately in NFTRH it had only bounced to lower highs (SOX excepted) and that was the market’s technical vulnerability.

If we’ve got an A-B-C bear market rally going on here the next target would be where the down-sloping SMA 200 will meet formidable resistance at 96. It’s just a possibility, if not a probability. It’s not as if USD looks technically stellar. But if this comes about you’ll want to have your buy targets ready for gold stocks and assuming more panicked bailout monetary and fiscal policy after the election, stocks, commodities and the various reflation trades.

It’s either that or Uncle Buck is going to get really pissed and deflate the whole damn macro with the yield curve’s steepener turning a more virulent deflationary. In that case gold, cash and the miners would be the play. The miners would fundamentally favor deflation. But then, you knew that already.

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