S&P Has One Gap Left

Published 08/05/2020, 05:50 PM

Just about every ursine molecule has been surgically removed from this market. The bulls have run with this thing virtually nonstop since March 23. The S&P has very little work left to do in order to fill its February price gap – the very last tidbit of resistance – before it simply muscles its way to lifetime highs, courtesy of a debt that will soon be $30 trillion.

Although the shape of the Dow Composite is similar to that of the S&P 500, it is farther away from its own lifetime highs. This is largely thanks to the fact that the Dow Transports are so battered since – let’s face it – even the endless lies from Fed Chairman Jerome Powell can’t convince people that the airline business is a swell place to put your cash.

Tech, of course, has added trillions of dollars in market value in just the past few months, with a new lifetime high now a near-daily event.

Almost all indexes, however, are hugging their March 23 ascending trendline very tightly. You can see that here, for instance, with the Dow Industrials.

Let’s face it, a lot of powerful people have an awful lot at stake keeping this farcical tragi-comedy suspended in midair. The combination of unprecedented interference with natural market forces by the traitors at the Fed and the present administration desperately wanting to be re-elected has created for us a fiscal circus that makes the fabled Tulipmania of the 17th century to be a pitiful historical example. This is like 50,000 Tulipmanias all at the same time.

This is why I celebrate gold so loudly and proudly. It is the one thing I can embrace and cheer, since its success is a knitting needle plunged directly into the eye socket of Jerome Powell. Gold is screaming that fiat will ultimately fail and that, in the end, Powell will be regarded by history with the same disgust and disdain as Josef Stalin.

 

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