BOTTOM LINE
The Fed is still printing money, and the
crowd is still expecting them to continue
in perpetuity. The crowd needs to get an
attitude adjustment, so look for a dip
toward a minor low due Aug. 25. Then
price should rebound toward a top due
Sep. 3, and then it gets more interesting
with the typical pre-election worries
becoming a dominant force affecting stock
prices. There will be downward pressure
on prices from natural liquidity, but the
Fed is still expected to provide counteracting upward push on stock prices. Bonds
are overdue for an interest rate rise. The
longer the Fed fights that, the larger the
eventual adjustment. Gold has seen a
blowoff to above $2000, and now a cyclical decline toward an October low is on
the agenda