So far readers and traders who have followed Variant 1 of the Basing Points procedure are sitting in the catbird seat and enjoying the naked mud wrestling going on here. Meanwhile we, being inveterate football players cannot resist when we see Lucy tee up the ball. We have to kick it, and did going long the indices yesterday. Don’t do this at home. A power bar like that makes us think that some smart money talked to Mitch McConnell and got the word that a deal is on for the debt limit. But don’t worry. While “revenue” will be “enhanced” no “taxes” will be raised. Have any of our readers read Orwell’s 1984?
Right or wrong, and we could well be wrong yesterday seemed to mark a change in market rhythms. Gold and silver appeared to give wave ending signals, and we cashed in those trades.
Yesterday’s bar closes what may well have been an exhaustion gap. At least we interpret it as such at the moment.
Oh, and while we were kicking Lucy’s football we were one hundred percent aware of what we have been saying for weeks: Signals are totally treacherous and undependable in this period of mule market. Keep following the major trend while your faithful correspondent makes a mule of himself.