Weekly Memorandum 3/14/2022
Stocks closed at a new weekly low for this decline on Friday, which is bearish. This suggests that prices could yet fall further towards the downside objectives highlighted in the Mercator Letter and Tactical Market Trader reports. The Fed is set to raise short-term interest rates this week by 25 basis points, which is going to reduce market liquidity even further. However, they have forewarned markets for months about this move, so much of it is already priced in.
Bond markets continued their decline, as inflationary pressures continue to mount. It's fascinating to see how even with geopolitical tensions, Treasuries can't maintain a bid. It's been the worst annual start to bond market performance in +40 years. This shows that global capital only wants dollars in cash right now-- not stocks or bonds. Speaking of dollars, the world reserve currency continues to surge higher contrary to the expectations of most.
Commodity prices pulled back last week, including grains and oil, but remain in strong uptrends. While they are overbought, they could still go higher from current prices, especially if they solidify higher-lows. Gold and silver had decent weeks but are pulling back today. Cryptocurrencies are still trading as they are in downtrends--because they are. Plenty of other opportunities elsewhere at the moment.
A new Mercator Letter will be published this Sunday, March 20.