Chart Gallery 5.10.21
May 8, 2021
May 8, 2021
Charts Support the Following Summary Outlook
From early May into the end of July, volatility should spike across all markets. The composite index Contrary Thinker developed represents just not the S&P but the world index, the bonds, the metals, China, etc.
By industry standard definition, volatility is bearish or perceived risk and fear by the general marketplace.
Contrary Thinker is S-T, I-T, and L-T on the following:
Bullish on Interest Rates (lower bond prices).
Bullish on the USD, it’s more than a technical point of view backing up the dollar to move. It is based on the nation’s sense of self-preservation. If any Sovereign Nation losses control of its debt it will lose its freedom. In the face of all of the people that can only think of buying without any regard for buying power are not thinking like big money and old money here in the USA. Nor are they understanding the “full faith and taxing power of the Treasury.
Bullish on the Aussie Dollar, S-T pullback underway.
Bullish on Commodities, on a new term basis, there may be a pullback buying opportunity.
Bearish on the Euro and Pound Sterling
Bearish n the US stock markets, the Nasdaq and the Russell have already made their ATHs, along with the FANG sector and the Tech sector.
Bearish on the World Stock Index, net the USA, the Pac Rim, and Asian Emerging Marfekts have already made their ATH. The EU market is mixed with a number still a good distance off their historical highs, with little chance of making new ATHs this cycle like the FTSE, while the Dax has posted up its ATH recently.
Bearish on Gold and Silver. Late last week the bullish sentiment jumped all over the higher prices with the trope, the same old story that is repeated during bull markets and bears. The inferred breakout looks like the move that occurred in January of this year. A head fake, the market will tip its hand early this week.
Crude Oil and Carbon Energy, S-T bearish and leaving the longer-term for fresh look after the expected “hyper-correlated” downturn.
Bitcoin and Cryptocurrencies, bearish. The first nine charts in the Galley feature how all of the markets made long-term peaks on irrational – panic – buying. The bonds are the leading example of what to expect after a FOMO peak. Regarding Bitcoin and others, they have no economic function, they serve no purpose in fiance or they do not feed people or build infrastructure. Plus, they are too volatile to be a currency for any country, and the supply is unlimited with new brands hitting the street weekly. As Buffet warned they are “risky and worthless. I can say almost with certainty that they will come to a bad ending.”
The second patch of charts features cycles both mundane (math-based) and others that are Galatic. They all suggest a trend starting this week and going into late July. Rates and the dollar up everything else down.
Click to Enlarge COT Table below for change dates and acceleration periods