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Imbalance II

By Sven Henrich in Northman Trader

Oh the irony.

It was exactly a year ago today, December 23, 2018, when I made the case for a technical bullish reconnect of markets that had overshot to the downside.

Back then in Imbalance I said, among other things, this:

“As of now we have massive imbalances to the downside and these disconnects will cause an effort at a reconnect…Bears are now screaming for ever lower targets in December. Ignore the screaming. Focus on the technicals. Everybody chill. Imbalances don’t last.”

And now with this Q4 being the polar opposite to last year and its current party like it’s 1999 atmosphere I find myself in the same spot: Making a case for technical reversion first before the next bull/bear debate. And yes, I’ve been making the Sell Case earlier with recognition that the Fed induced liquidity program may well extend into Q1 2020 and this still applies. After all the Fed’s current liquidity interventions are unprecedented: “The Fed is also prepared to inject up to $490 billion around Dec. 31.”

Absolute madness with zero accountability as to collateral consequences.

That said the technicals are screaming imbalance as they did exactly a year ago.

So I’ll share a few charts for your consideration.

To read this article in its entirety, click here.

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Although the information in this commentary has been obtained from sources believed to be reliable, The Gold IRA Company does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. The Gold IRA Company will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.