Here's What's Actually Driving Things

July 30, 2024

This is where it all starts folks.

The story starts and ends with the Bond Market.

You may not like it. I know I certainly don't. But that's the world we've always lived in. And it's the world I would expect us to be in for a long long time.

The bond market is $130 Trillion. That's compared to a mere $50 Trillion US Stock Market. The total Global stock market is slightly over $100 Trillion, for perspective.

Looking at other assets, Gold is just under $16 Trillion and Silver at just $1.5 Trillion.

Bitcoin is at $1.3 Trillion and total Crypto market cap is just under $2.4 Trillion.

Again, this is compared to the $130 Trillion bond market. Not to mention the quadrillions that represent the forex markets.

The bond market moves all the other markets. It starts here.

And so it's been hard to ignore the relative strength we've seen in the US Treasury Bond market compared with the Japanese Yen.

As they've both recovered some, the strength has been within the US Bond Market all along:

So why should we care?

Why does this matter?

Higher Bonds+ Higher Japanese Yen = Lower Interest Rates + Higher Stock Prices

Think about all these rate sensitive groups like Regional Banks and Biotechs.

You notice how well they've been doing lately?

The market is good about sniffing this stuff out.

There's a lot of implications from this Chart above. I just had to show it to you.

It's the centerpiece of our upcoming discussion this Thursday night.

August 1st is the first chance we get at reviewing all the monthly candlesticks together.

Our LIVE Monthly Charts Video Conference Call will be Thursday August 1st @ 6PM ET.

Premium Members can REGISTER HERE.

We'll be talking all the major US Indexes, the participation in Global Markets, how rates are impacting stocks, which areas we want to lean into and which ones we want to avoid.

There are a lot of things working, but we'll focus on what we think can make the most money in the back half of this quarter.

We're here to make money in bull markets.

We'll discuss all the details and which stocks we think can maximize this opportunity.

See you in there!