Via EvergreenGavekal.com,
“Betting against gold is the same as betting on governments. He who bets on governments and government money bets against 6,000 years of recorded human history.”
– Charles De Gaulle, Leader of the French resistance during WWII and 18th President of France
SUMMARY
Authored by Mark St.Cyr,
One of the premier features that was to help markets interpret upcoming policy moves made at the Federal Reserve was the idea and implementation of: forward guidance. This new feature was enacted by the former Chairman Ben Bernanke. The reasoning? In a nut shell it was no more than a heads up to the financial markets of what the Fed. would do, and when. i.e., Hit this metric of X and the Fed. will do Y. So – position accordingly.
Fearful of a renewed rise in the US dollar, Saxo's chief economist Steen Jakobsen expects a "nasty March" as this will kill commodity stabilization as well as the ability of emerging markets to live up to their expectations to revitalize the global economy. Despite The Bank of Japan's clear "example of how not to do things," Jakobsen warns other central banks will follow Kuroda's cue and, as he explains below, is "shorting everything" as he sees two major canaries in the coalmine.
Authored by Satyajit Das', author of the new book "The Age Of Stagnation" (via MarketWatch),
The mispricing of assets across world markets has reached epidemic proportions.
Stock prices have made strong advances over the past several years, yet market analysts see further gains, arguing that the selloffs of August 2015 and early 2016 represent a healthy correction.
Whether this week's market surge was catalyzed by two consecutive "technical problems" in the bond market, first the unexpected failure of the Fed's MBS POMO on Wednesday and then the 7 Year Treasury auction's last minute cancellations yesterday, and quite clearly it was...
... is irrelevant as the short squeeze has not only returned with a vengeance...
... but the critical 1,950 resistance and 50 DMA in the S&P500 was taken out...