The Central Bankers control the markets..........but for how long ? We know that NO-ONE controls the markets ultimately,not even Central Bankers,but for a while it can certainly seem that they do.
My own view is that at some stage,sooner than most expect, there will be a currency re-set,involving China,Russia,the BRICs .....and ,maybe...Germany ? One thing is for sure ,the path we are on is unsustainable. In the meantime,we can only trade what we see
I have mentioned 2025 several times before,being the squareof 45,but have just noticed that 2031.25,an important Murrey Math line (1875 + 156.25) is close to this ,so lets see if price reacts to this area,should we continue higher
“There are two giant forces currently engaged in an almost existential tug of war for control of the financial markets.
On the one hand, markets want to deleverage, pay down debt and contract the money supply.
On the other, central banks simply cannot afford to let deflation win (it would trigger widespread government bond defaults), so they are on the other side, expanding credit, issuing more debt, and increasing the money supply.
Which will win in the end? I suspect the markets will. As Mrs Thatcher said, you cannot buck the market.
But in the short to medium term, central banks are going to do everything in their power to keep this rickety bandwagon on the road. Outcome: tremendous volatility.
Investors need to be very careful. We are already past the point of no return.” - Tim Price