Pilgrim’s Progress

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Well, it was another one of those weekends where we were treated to all manner of market scares (“Trump is going to announce tariffs on $200 billion more of goods!”………..”China is going to walk away from trade talks!”………..”Oh noes!”) and yet, here we are just before the open on Monday morning, and the ES has collapsed all of 1/10th of a single percentage point. I can’t say I’m surprised.

One market that continues to behave As God Intended ™ is the bonds, whose pattern I’ve been following all year long. The head and shoulders pattern on it is glorious, and it seems to me that interest rates are simply going to continue stomping higher (which will do wonders for a planet buried in countless trillions of dollars in debt). The recent failure of this pattern (magenta tint) is, to my mind, the most significant market event to take place in yearsΒ (the crypto revolution notwithstanding which, let’s face it, has enriched all of our lives beyond measure).

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