Hoarding Of Physical Gold, Voracious Global Demand To Produce Undeliverable Gold Futures, Parabolic Move to $2700-3000/ozSubmitted by MatrixAnalytix on 08/01/2011 12:01 -0400
As we've been noting over the past several weeks this rally bore a striking resemblance to the Feb-April 2010 rally and as we've been predicting we believed it would top out and end in the exact same fashion.
We continue to believe we are trading in extremely similar fashion to the Feb-April 2010 rally (strong support at 10-day EMA on S&P, depressed VIX, high levels of complacency, widespread overowned sectors, extreme bullishness, etc) which of course ended in a violent sell-off, and as noted yesterday we believe we are now trading at the equivalent of the April 20, 2010 point where equities are rebounding a bit off their first test of the 20-day EMA following an initial break below the 10-day EMA (see charts below).
Q&A: An In-Depth Look At The Anatomy Of The Current Supply/Demand Imbalance Propelling Equities HigherSubmitted by MatrixAnalytix on 11/04/2010 11:41 -0400
Low supply+ very high demand = higher prices
Matrix Analytix Capital Reallocation Theory: Capital Flight Out Of Equities To Produce Housing Bottom In 2011Submitted by MatrixAnalytix on 08/24/2010 15:22 -0400
While housing prices are expected to continue declining near-term due to uptick in foreclosures, we expect the significant amount of investment capital which has been pulled from equities and currently sits in Treasuries and/or money markets will become redeployed into the housing market in 2011 which will therefore begin clearing supply of houses available and put a bottom under housing prices especially at the low-end of the market.
While relatively low liquidity equity and commodity markets are attempting to signal a global recovery (and hence a more inflationary environment), the two most liquid and therefore most efficient financial markets (Treasury and FX) continue to invalidate the claims made by these markets ultimately portraying a much more accurate environment with significant deflationary headwinds.
Recent 1 to 1 Treasury to Equity correlation continues to break down as we noted monday...note Treasuries holding near high of the day as equities rally back into green...something is amiss in the financial markets right now with one of these markets being artificially skewed...
Multiple choice time.
Desire to become global superpower driven by underlying principle that the world lacks enough supply of natural resources to prolong the existence of every sovereign nation over the long run.
The uptick in unemployment is directly correlated to the extreme tightening in credit standards we've seen over the past year or so. The environment of lax credit "easy money" we experienced over the past several decades artificially inflated the perceived purchasing power of households by most likely several magnitudes.