Everything that wasn’t working…

Just remember, everything is fine as long as markets cooperate. Just remember, central banks are defending the markets because they are afraid of what the markets might do if they did not constantly interfere with their 0% rates, negative rates, printing of money and their outright buying of equities and now, Europe’s buying of corporates.

Just remember, there is a modus operandi. Market go down…ease more…market goes up. Market then goes down…ease more than the last…market goes up. Market then goes down…ease more than the last…market goes up….and recycle!  Just notice, markets are no longer going up like they used to. Right now, it is a recovery rally.  It should be obvious we have yet to get the “final nail” but leave no doubt, we have seen a ton of termites in many areas. Stay tuned.

On Feb 11-12, we told you another low was being put in. That low has now turned into a good low. On top of that, we recently told you we thought all the areas that led down for 18-plus months had finally tuned the corner. That continues also as oil, energy, steel, copper, aluminum, metals, mining, commodity countries, emerging markets and everything we told you we were bearish on over those 18-plus months are now turning up. So far, we have seen nothing to change that stance as the big money is showing up every day buying into these areas. Just remember and as we told you, these areas became about as unloved and under-owned as we have seen in a long while…thus the persistent buying so far.

Near term, markets are beyond overbought but the fact they could get that overbought is good thing. We would love to see a settling down but…next up…more central bank nonsense as we now chime in. Enjoy!