Short note on markets and central banks!

We will have a bigger report over the weekend but:

After calling for a low on February 11-12, we think there is a darn good chance that yesterday’s action marks the high for now. We are seeing a lot of tops in place…simple as that…while we are seeing gold and other commodities continue with their strength. Gold is breaking out as we write this. Other commodities are very overbought but remain strong.

Central banks are doing a lot of #@%#@-ing around causing currencies to fly all over the map. The now very weak dollar is causing commodities to shoot up. The weak dollar is the outcome of Mrs. Bubble’s turnaround from her “we will hike rates throughout the year” routine. We continue to believe that eventually, QE4 is in the offing as Yellen is just like the rest.

Just remember our thesis. Regardless of the market rally, the economy stinks with earnings and sales growth heading south. Rallies have been nothing but central-bank induced. We will repeat the list of massive intervention that has occurred in just the past two months in our weekend report.

You must know by now that asking a simple question gets you to where one must scratch their head. The question is:

Why do central banks have to continue to print money, have 0% rates, have negative rates, go deeper into negative rates and amazingly and unashamedly…buy up their own stock and bond markets?

Again, we will have much more on this over the weekend including our ripping on what the ECB dude said in an interview about people who just want a return on their savings. You will not believe it and will not believe this man actually has his finger on trillions!

Gary Kaltbaum