March is here. I’ve been standing aside from these markets for two months now, partly because I don’t have any numbers at these levels, and partly because of the speculative frenzy in smaller stocks.
Interest rates: before the pandemic US interest rates were in the 2 – 2.5% area. Then the virus hit and Powell reduced rates in one fell swoop to 0.5%. Now the treasuries market is sensing blood – the assumption appears to be that if the vaccine allows things to return to normal, then surely interest rates should also return to normal. So from near negative rates treasuries have seen yields rise in dramatic fashion over the last few weeks.
The markets continue their madness, and the action has returned to GME and other shorted stocks. I don’t have any positions and I’m happy to stand aside.
NASDAQ COMP: I believe the top has been seen and the COMP has now completed wave ‘a’ of a larger abc which targets the 12,000 area or below. See chart…