If the top part of this chart looks bullish to you, then the stock
market and a sense that all is well in the financial system should not
look bullish to you. The next crisis would be indicated by the long
‘bowl’ shown on the chart turning up hard. Although right now, it just
continues to gently round upward, above a supportive moving average.
Gold, now squarely a ‘risk off’ investment, should follow the curve
ultimately. Over the last 1.5+ years gold has shaken out the herd and
people who counterfeit official money have drawn that herd right back
into ‘risk on’.
It will errr, not end well.