Gravity says, "What goes up, must come down."
Market Says...
When the dollar rises, equities fall. Values never change. It is just the machinations of currency exchange. This is part of the thinking, "Don't fight the Fed!"
We called for the dollar to bounce back in January when it held resistance at 100. We said that we think that it will rise to 106. This price action has put pressure on the market. So far, we are correct. The market is falling and the dollar is rising.
Commodity Trouble
Dear Reader, you know by know that we like the precious metals and oil is a necessity. It is sad that it is a big pollutor, but until someone can achieve a new, safe energy source, it is what we got.
Dr. Copper, has done a full fibonacci upward price move from $3.13 to $4.36. It should retrace with the dollar strength. Then, we will find out if China reopening can effect its price? The calendar must also include the next Fed meeting.
Gold, has already begun its retracement. We would like to see that it holds $1800, but we think it will find resistance at $1798. The precious metals have shown solid pricing power in the face of the Fed interest rate hikes. We believe it will rise over $2,000 this year.
Oil, we are not hypocrites! We may support the Sierra Club, but the need for oil is basic to our way of life. We do not want to get into the politics of the environment group, but we do not follow all their beliefs. Anyway, oil appears to be forming a head and shoulders pattern on a daily chart. If it completes the configuration, oil should fall to test the lows at $70. Then, like with copper, the reopening of China could change the price after that point.
Now, we like to address the State of the Union Speech...
We love "Made in America" however President Biden has done little to make that happen. His quote about the supply chain is nice BS, but action speaks louder than words.
He gave a few truths. Our infrastructure is 13th. We have stated this many times. We are not in the top ten in all categories that matter. We lead in homelessness. Poverty is a growth category - action speaks louder than words.
$400,000 tax free! Get freaking real! President Obama showed that he was out of touch when he used the income level of $200,000. People, if you make $400K per year, you are wealthy. Biden did point out one truth that corporations made $40 billion in profits and paid no taxes. We need to tax them all, especially the ones who outsourced jobs. We need higher tariffs! We need a fairer tax on income and we need to balance the budget. Does anyone realize that last month, we had $968 in the RED in our import/export column. Does this sound like a supply chain made in America? Action speaks louder than words.
Defense, is led by incompetent idiots! Their lack of action says it all. When they do act, they usually make the wrong choices. God, please, help us.
Summation: Biden said, "Hooray for our side." The Republicans offered nothing. The only truth is a point about the American people, "Never bet against America!" Peace.
