Do Spirals Still Work?

Or do the MoneyPrinting Pumps trump all?

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The S&P has disengaged from the EURJPY rate. We had speculated before that the EURJPY rate was in turn driven by the ration of BOJ to ECB balance sheets.

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Interestingly, while US stocks have disengaged from that EURJPY rate, they remain closely tied to the ratio of the balance sheets. In fact, the ratio of the BOJ to ECB sheets has risen sharply recently, right in line with this strong S&P rally. The suggestion here is that Japanese printing is still driving stocks, even if the relationship with the EURJPY exchange rate has broken down.

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The Battle Continues

The battle between the Autumn seasonal down cycles and the FED's money pump continues. The coming week is the most dangerous period for stocks, but the FED seems to have everything well-stabilized thanks to is money printing efforts.

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Gold: The Spiral Calendar & Cycle Big Picture

The monthly gold chart below shows a very nice 14 year cycle vibration from one of the major events in financial history, the closing of the gold window in 1971.  The two subsequent lows mark the lowest price in the 1980s as well as the final 1999 low of that 20 year bear market. The next year in the cycle is 2013.

 

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The more interesting relationship is present in the Spiral Calendar - discussed within for subscribers.

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