Both the SP500 and Gold are signaling immediate-term TRADE oversold within bullish intermediate-term TRENDs into the close today. This should come as no surprise as the 30-day inverse correlation between USD (which is signaling overbought) and SPX/Gold is -0.9.
Most of this comes on the heels of another reaction to the Fed’s confused forecast:
“I do want to emphasize that this is a forecast”
Indeed. And her forecasts on growth and inflation are wrong at least 2/3rds of the time.
She’s also saying she’s going to let #InflationAccelerating continue towards the “committee’s objective.” Which will, in turn, slow real GDP growth faster. Then she’ll get bearish on the economy after that.
Hedgeye Playbook says:
- Short USD (UUP) on the overbought signal
- Buy Gold (GLD) on the oversold signal
- Buy Bonds (TLT) on the oversold signal
Keith R. McCullough
Chief Executive Officer