The market is preparing a truckload of surprises for the next two months. The biggest of them will be the crash in Treasuries, which will cause a giant run into the dollar, causing the metals, stocks and base pairs to fall dramatically.
Consider the following:
- TLT is ready to move down, 80..100 realistic targets
- GBP is ready to move to 1.06
- EURGBP - ready for 0.78 (down together with the Pound!)
- USDJPY - begins the final descent to 83..86
- EURJPY is about to exit a decade-long triangle and move down wildly (look on the weekly, it's hilarious)
- In Silver, Wave E will be the last one in the downtrend that began in Aug'20, I expect it to last for as long as the EUR and other base pairs fall.
The fact that all instruments get aligned for one big move are evidence of a very long term cycle ending. The larger the cycle, the more various instruments tend to move together towards its end.
I think in H1'21 we will see the end of a long-term cycle in Stocks (a major low, SPX ~1000) and in Treasuries at the same time, which will be followed by a few years of recovery.
Consider the following:
- TLT is ready to move down, 80..100 realistic targets
- GBP is ready to move to 1.06
- EURGBP - ready for 0.78 (down together with the Pound!)
- USDJPY - begins the final descent to 83..86
- EURJPY is about to exit a decade-long triangle and move down wildly (look on the weekly, it's hilarious)
- In Silver, Wave E will be the last one in the downtrend that began in Aug'20, I expect it to last for as long as the EUR and other base pairs fall.
The fact that all instruments get aligned for one big move are evidence of a very long term cycle ending. The larger the cycle, the more various instruments tend to move together towards its end.
I think in H1'21 we will see the end of a long-term cycle in Stocks (a major low, SPX ~1000) and in Treasuries at the same time, which will be followed by a few years of recovery.
