Of “What if’s” and “Wish fors.”

Of "what if's" and "wish fors." 112016whatif

click chart to enlarge What if dollar yen was priced according to relative central bank balance sheets?

112016bigpump

click chart to enlarge The Dollar Rally, be careful what you wish for.

112016smallpump

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112016spxad

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Sorting

It's been a rough week for conventional wisdom in many forms. Markets are soring winners and losers from the wreckage of conventional wisdom.

1112163dnh

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111216converge

click chart to enlarge The S&P has re-synced with the Nikkei, closing the recent lag.

111216goldyen

click chart to enlarge Gold says dollar yen higher.

111216dollaryenwhere

click chart to enlarge Relative balance sheet size says dollar yen much higher.

111216pumpsmall

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However, dollar strength depresses the balance sheet money pump denominated in dollars. A problem for stocks later.

111216bigpump

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111216spxad

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Election Eve

I have no clue who wins tomorrow.

110716smallpump

click chart to enlarge I mentioned early last week that the dollar decline was re-inflating the Money Printing Pump and setting the stage for the next advance.

110716bigpump

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110716pumpcorrel

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110716goldyen

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110716spxad

click chart to enlarge Small bullish divergence confirmed today.

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