MBO Issue 115 (July 2021) Melt Up In Progress And Let The Fireworks Begin

Content

• Review
• Euro New Down Trend On Daily Established
• S&P Melt Up In Progress
• Gold Is Running Out Of Time
• Bitcoin Fighting For Its Existence
• 10-Year Note Yield Waiting For Its Next Move
• Big Picture Summary

Review

Euro channel mid resistance confirmed and started a new down trend on daily. Breaking the channel support was expected and completed quickly.

S&P resistance zone gave it one more sudden drop that last only for 2 days. Once the resistance zone was challenged the third time, as expected it go for the melt up play to the longer term resistance above.

Gold not able to stay above its previous resistance trendline and led to a flush back down to the long term up channel top. The limited upside conjecture continues to hold.

Bitcoin pushed higher as expected and fall from there like clockwork. Sometimes basic chart reading triumph all these self-imagined “fundamentals” and whatever esoteric indicators created to justify a pre-existing bias (i.e. sunk cost fallacy).

10-year note yield doing what is expected to touch down at the highest support zone. Next move will be up to the Fed. Nah, I don’t think so but I have to say it this way to comfort those who live in a bubble.

So nothing happened out of expectations and this month we are ready for the fireworks!

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