Do you sense it? Do you feel it? A perturbation that seems to be spreading? We don’t want to use ‘that’ word. But admit it. It has been on our minds. We don’t want to use the ‘c’ word, but I will just come out and say it. One can almost feel an imperceptible contraction. It is ever so slight. And it is only occuring on a short-term basis. But it’s there. It is as if you can almost feel a gravitational ‘tug’, occuring in all of the markets?
I’m not talking about predictions of the future. I’m talking about what is occuring right now.
I’ve had a good time trading Forex lately with the trades I have shared in the Stocktwits stream. I was hit with a couple of losses here in the last couple of days. Although I remain profitable on the trades I’ve shared there …
… I’m noticing that trends on the markets I am trading are failing with increasing rapidiity.
When I look at the stock market all I find are rallies that can’t seem to surpass 1950.
Treasuries are caught in a similar price channel. The markets seem a bit thin.
The transports are a mess, and if you listen to the companies who are in the actual business of shipping goods and services throughout the economy, you will hear that business there is down. It is no accident that Union Pacific (UNP) (whom I would argue is the most financially stable of the railroards), has been falling … day, after day … after day.
And China? China is in so much trouble, they are making moves of complete and utter desperation.
When you add all of the above facets together? It as if you can feel money, at least in the short-term … contracting into the nexis of the short-end.
I’m keeping my eye’s on the 30’s. But it ‘feels’ like a bit of contraction is occuring in the markets. Until we see something break loose, I’m just observing.