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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Does the Spiral Calendar still matter in a climate of Central Bank money printing? Recent trading action appears extreme and emotional. With prices at all-time highs in many markets, it’s time to look for potential long-term Spiral Calendar relationships. We’re nine calendary days from the F28 anniversary of the very important December 1968 top. There is potential here for a major reversal. I’ll be looking at shorter-term Spiral Calendar relationships in upcoming updates to see if we can pin down a potential reversal nearby.
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