Tomorrow morning, before the opening bell, criminal master and all-around n’er-do-well Jerome Powell will do his “consequential‘ speech at Jackson ‘I’m gonna rip you a new” Hole.
Since any pretense of an actual market has been dispatched via eleven years of blatant Fed control, everything is “on hold” until Uncle J lets us know what future he has planned for us.
My personal obsession, the small caps, have been repelled from a short-term horizontal line. Until they break the circled area, it hardly matters. We’re just banging around pointlessly.
Here is the longer-term view of the small caps, by way of the /RTY futures. We are tightly range-bound at the moment, and the ascending trendline you see goes all the way back to the March bottom. Breaking it would be a big deal.
The only asset which has been sucking out loud lately has been gold. My “Tim goes to the bullion shop” timing hasn’t been too terrible lately. Although I continue to believe gold’s multi-year future is very bright, short-term I got very uncomfortable above $2000/ounce, so I disposed of the majority of my holdings. We could be falling hard, although I think there’s excellent support in the 1700-1750 zone. You can see the breakdown in /GC happening here:
