The unmarked hourly chart (above) of inverse fund LABD, shows the location of the last update.
That update called for LABD to reverse higher; based on thrust action of the market itself.
Soon after (magenta arrow), LABD pivoted higher.
The right side action has a familiar repeating trend:
The chart below is a compressed version.
The repeating lines have been added. Arrows show contact points:
Strictly as a courtesy, daily chart of LABD is below with notations of buy and sell (not advice, not a recommendation) for my firm’s main account.
A good many that monitor this site have probably become bored with biotech … just as they did with Steven Van Metre’s analysis of bonds (back at the lows).
Van Metre is providing an excellent service. True, he probably has people moving their accounts to him. He’s running a business after all.
However, that does not negate the fact, he’s one of, if not the only one saying that we’re about to enter a deflationary environment (if not just temporally); complete opposite the conformist (and media led) crowd of hyper-inflationists.
Even Johnny Bravo has said, ‘hyper-inflation will come … but when?’
The short positioning in biotech (via LABD) continues: Not advice, not a recommendation.
Rumors are swirling now about power outages and cyber attacks with major corporation website shut-downs.
Does anyone really want be to playing around with long positions when torpedoes (to hit the market) are already in the water?
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
That’s a comment often seen on any number of Jerimiah Babe’s updates; openly mocking his doom and gloom assessment.
Whether he’s at the local homeless camp in Los Angeles, or in his home next to the golf course, the question remains the same;
‘J.B., When’s the collapse?’
Sometimes his response (if he’s at home) is to turn his head to the window and say “Have you looked outside?”
A good number of American’s have become so pathetically weak, ignorant, and just (to overuse the word) plain stupid, they expect to sit on their newly built patio deck (using last year’s stimmie check) and observe the fall of the U.S. from the comforts of their own back-yard.
Of course, there are some (including this author) who are first generation Americans. Their parents and grandparents emigrated (or escaped) from communist countries.
Those people do not have to ‘wake up’; they were never asleep.
South Africa gives us the model for what’s in store … at least for sections of the U.S.; probably starting first with the blue sates (we’ll see).
You might say, it’s already happening in Portland.
What can be said? We can call it lies, misinformation, propaganda but none of those really get to the root.
Input prices are rising not from inflation, but from supply constriction and disruption.
For example, the corporate (big-Ag) food supply chain as reported on many times, is intentionally being destroyed. The result of course, prices go higher.
We’re also in a quiet sun-cycle period that only serves to help with (cold) weather extremes. The only discussion from the media concerning the weather is that’s it’s getting warmer, right? Opposite of reality.
So we’re taking that ‘opposite of reality’ as a contrary indicator.
Whatever inflation we’ve got after nearly twelve years, is probably at or near a peak … ready to head lower.
That includes the market as well. The likely outcome:
Market down, bonds up.
The daily close of long bond TLT, has it in a support zone. One attempt has already been made to position long via TMF (not advice, not a recommendation) as detailed in this report.
Once again this past Friday, another TMF entry.
Both bonds and the markets (i.e. S&P 500) are at opposite extremes. The risk of loss in bonds may have reached its nadir.