TNX - 10 Year Note Yield / High to Highs FIB Wave ExtensionsThe 10Yr Yield is performing as indicated. The Reversal is trading
the Trend Line and FIB Extensions to near perfection.
Beyond the 1Hr, which is a better TF to illustrate the Price
action - The Daily continues to remain in Strength within the
trend.
The Trade Plan has a break of the 1.7650 Highs as the Catalyst
for the test of the Equity Complex 200SMAs.
Given the Complexity of this Counter-Trend, Equites could continue
to rise as Yields Rise for the Short Term.
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The current Environment is dis-similar to 2016 when Yields and Equities
were rising. Traders cite this as a non-conditional similarity and are
using it to Echo.
It is entirely dis-similar and not a confirmation by any metric.
The Markets in 2016 were fueled by a Tax Cut, a Give-away for the very
Wealthy and Corporations.
Since March of 2020, Price action has been fueled entirely by the "V" Shaped
Recovery narrative - Supported by $10s of Trillions in DEBT - Daylight and Shadow.
The Meme's for Buying are far and wide - Fundamentally, they are almost always,
without exception - Incorrect - Fundamentals do matter, Debt matters, Solvency
matters... This abject degeneracy will meet its maker in 2022 as 5/5 concludes.
Never in the History of the US Equity Complex has Factual Reality been this distorted.
It will end with the Equities Markets down 50% - 90% IMHO.
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During Powell's Friday discussion, his admission "Inflation is not Transitory, but here to
stay longer than the Federal Reserve had Initially indicated..."
Any Human purchasing Food & Energy was far ahead of this malaise from Chair Powell.
Inflation Fears will need to be calmed for there not to be a Panic event, we indicated
it would be Supply Shortages devolving into a 30%+ Price increase.
Historically - this is the trigger of prior Inflations throughout History.
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The Hourly indicated it is time to pay attention to a return to Fill at least one of the
GAPs below and backtest the lower trendline, the overthrow appears to be short-term
exhaustion.
This would provide the NQ with room for a retest of the recent highs @ 15483, well short
of our Price Objectives Between 15513/17.
