The FED is trying to control the inflation that its policies
of zero interest caused. As a result, the economy is struggling
and GDP has gone negative.
That is not a good recipe for the current administration
heading into the mid-term election cycle although the Supreme
Court decision on Roe vs. Wade might energize the Democratic base.
It is possible that GDP will be negative in the 2nd half of
2022 as well.
It would not be surprising to see China attacking Taiwan in the
coming quarter. With the Russian/Ukraine conflict
continuing, the U.S. has drastically reduced its supply of certain
weapons.
With the southern border being wide-open, it would not be
surprising to find illegals that could wreck havoc if the U.S.
tried to intervene in the China/Taiwan conflict as it starts.
China & the drug cartels have a major monetary interest in
the continuing opioid drug trade.
Supply chain problems and rising interest rates are beginning
to undermine all economic activity in the world with the reduction
in the food supply a major problem going forward.
The Acc/Dis chart remains in negative territory
suggesting that cash is a prudent position.
Remember -- "Only purchasing power counts!"
Setting definitive action points for held positions will be key to
retaining profits in this market.
It is difficult to find long-term trading opportunities with the
future so uncertain.
By any reasonable measure, this market is
dangerous.
Be careful ....
To review the latest FlowChart, click
here.
