Deflation is all the Rage
The charts below pretty much sum up the day, BREAKDOWN:
Breakout points failed to hold, and the selling continues to intensify. Nothing is safe here. Commodities are getting killed and the action screams deflation. As Fly, says, “Welcome to the deflationary vortex!” Oil really needs to turn before things get better, today’s selling is relentless.
I want no part of longs here and am back to cash here after taking $DVN off for a loss, as well as THLD. Today’s selling caught me by surprised, I thought we might see a small pullback, but nothing like this.
Recent longs are now trapped, I would not be surprised to see further downside from here. Sitting tight for now in cash.
7 Responses to Deflation is all the Rage
eek… CNBC is getting into panic mode, even Santelli. Down 300 maybe?
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good news is we still hold the 200 day moving average in all of the indices. But, the action in commodities is little worrisome.
Nice call this morning on breakouts not holding.
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yesterday CNBC was elated. Fuck them
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Just saw a cat do a dog so pretty sure this is the go away for the summer sell off…
Flip flops….engaged.
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Read between the lines of the Fed statement. Practically telling you deflation.
Oil clearly, manipulated up, manipulated down. Under 80 in that short time not normal.
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Oil shouldn’t have ever been where it was…
Deflationary forces are the reality, have been since the housing bust. For all the panic and impressively powerful marketing and propaganda of neoclassical economists and hyperinflation fear mongers, deflation is the name of the game, and the world basically lacks enough currency. Especially Europe.
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“Neoclassical economists and hyperinflation fear mongers”
Good one…..
Is that the polite term for Keynesians. and Goldbugs
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