GLD briefly slipped above its 50-day moving average yesterday, but could not hold it as support. Today is day 26 of the new Master Cycle. The reversal in a minute Wave [iv] makes it extremely left-translated and bearish for several more months.
TLT made a downside breakout, making a low thus far at 107.45. This move breaks the retracement and opens the way for a resumption of longer-term decline. This will magnify the losses at the banks and the Federal Reserve. The only way to stop the losses is to sell, but the selling will feed on itself.
The implications for the banks goes beyond only losses. The banks have already been covering up losses since 2007. This move brings up the spectre of insolvency again.
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