Jack the Pipper

Based on the Stocks/Commodities ratio chart we have been following and sharing for the last several years, it’s now time to start buying commodities; at least in a greater proportion to stocks.

Despite economists tidy exclamations of ceteris paribus (roughly translated as other conditions remaining the same), in the real world of pseudo free market prices, all relationships which are embodied by said prices are continuously fluctuating; conditions never remain the same.

Is inflation, at least in real goods, still dead? Has the forward growth outlook (the dot plot thing which I don’t understand) changed?

Not satisfied with her maniacal immigration policy, which threatens the very existence of hard fought western cultural norms across Europe, German Chancellor Angela is now complaining about the US not being a viable partner for Germany or Europe.

The US economy is slowing as seen in the 2s vs 10s yield spread tightening; i.e. the flattening of the yield curve.

When the spread between the 2-year and 10-year note contracts, it is generally indicative of slowing economic conditions.

We have cautiously maintained our US dollar bias through the latest downtrend measured from the beginning of April this year labeled wave [b].

As I have shared recently, the Canadian dollar is following oil prices lower (and we are expecting a fall in WTI to the mid-30’s).

The US dollar is getting whacked today against the euro, yen, and pound…but in this risk-off day where stocks are getting clobbered, the dollar is holing up against the commodity currencies.

If, the fifth and final wave rally of the US dollar bull market, which began back in 2008, is underway [and for the record we have been showing this setup for a long time; and granted, we need a move back above the old high at 103.82 to add more confidence]…