2022-06-28

Doomed Rally or Consolidation?

Crude and long-term treasuries are both moving in directions that say "bear market." The Japanese yen moving higher again. Stocks are the strongest piece of the puzzle, but struggling at resistance. I did expect a slower rally for a larger rally, but this is taking place with CL above and ZB below levels that are seriously threatening to unleash the next selling wave. The yen could collapse at any time. In a nutshell, a larger rally would happen in the context of stress coming out of the system, but the government is adding stress into the system by further antagonizing Russia and coming up with harebrained, thoroughly debunked ideas for easing supply problems.

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