I realize this theme could be wearing on some people, but with all the subtlety of a sledgehammer I am going to pound it until it either aborts or completes. It is, in my opinion, too important not to.
Amigo 1: Stock Market vs. Gold
The pattern that formed from 2015 to 2017 measures to 2.50. The 38% Fib retrace level just happens to be that as well. Interpretation: Bullish until the 2.50 area is reached, then major caution.
Amigo 2: 10yr & 30yr Interest Rates
10yr yield still in a posture to rise to the 2.9% target. A less ‘in the bag’ Amigo than his fellow above, but still intact. Interpretation: The inflation has been in stocks on this macro cycle. When the limiter is reached, either the inflation will morph into something more traditional and virulent (with commodities and precious metals taking over) or it will be cut off at the knees as deflation finally takes back all the debt used to inflate assets on this cycle.
This post was published at GoldSeek on 8 December 2017.