The following is excerpted from NFTRH 496‘s US & Global Market Indicators & Internals segment. It took on a life of its own, considering what you see below is not even half the segment, which itself is not usually a primary aspect of the NFTRH service.
For the last few weeks we’ve used the conditions noted in the graphic below as a guide. Well, the ‘inflation trade’ (IT) popped last week and that included cyclical metals (as well as silver) ramming upward vs. gold and TIP rising vs. TLT & IEF.
As for credit conditions, there is little imminently raising caution flags as commercial lending and risk taking (as indicated by high yield junk bonds) continue apace, but the note still stands on the bigger picture as the credit system and money supply are gumming up with the Fed in quantitative and Fed Funds tightening mode while the velocity of money in the economy maintains a secular downtrend. (more…)