Interim Market update Jan 21, 2022

[SOL]

The velocity of money chart clearly indicates that most of the inflationary pressures facing the West are manmade and inflicted due to a combination of utter stupidity and uncontrolled greed. There can be no hyperinflation or very high inflation without a severe uptick in the velocity of money. Demand exceeds supply because supplies can't make it to the market on time. Prior to COVID, there was no issue, and then suddenly, the world became crippled. If you believe this rubbish, we have an alien piece of technology that we are willing to sell you at a special price.

Asia is not experiencing the same inflationary pressures as America and Western Europe.

Asia is the global inflation exception

The world is experiencing a dramatic bout of inflation. Except for the places where it is not. Sharp price rises in the US and UK — where the headline consumer price index is up by 6 per cent and 4 per cent, respectively — have raised fears of a disastrous mistake by central banks and a return to the chronic inflation of the 1970s. But across much of Asia, price rises are subdued. That divergence holds lessons for economic policy, now and in the future. In China, the consumer price index is up by 1.5 per cent compared with a year ago, while in Japan, as usual, inflation is roughly zero. In Australia, the headline CPI may be up by 3 per cent, but underlying inflation of 2.1 per cent is towards the bottom of the central bank's target range.
Asians have also, by and large, been more cautious than Europeans or Americans when their economies do open up. In Japan, for example, elderly households account for almost 40 per cent of consumption, as Bank of Japan governor Haruhiko Kuroda noted in a recent speech. But even though Japan's retirees are now largely vaccinated, their consumption of services has not yet returned to normal, let alone exhibited a post-pandemic boom.Smaller swings in demand meant less pressure for supply to respond. But the Covid-19 pandemic has also illustrated the consequences of Asia's global manufacturing dominance. Since the region makes most of the world's stuff, it can more easily keep itself well supplied.

Gareth Leather and Mark Williams at Capital Economics discuss some of these factors in a recent note. For example, whereas the cost of shipping a container from China to Europe has risen fivefold since Covid hit, the cost of shipping it within Asia has only doubled. When Covid prompted factory closures, Asian companies had a greater choice of alternative suppliers within the region, meaning less disruption to supply. In the automobile sector, South Korea and China were able to make sure that domestic producers had priority access to scarce semiconductors. There is double-digit inflation for automobiles in the US. In East Asia, prices have barely risen.https://bit.ly/3GP1kPG
East Asia & Pacific Inflation Rate 1989-2022

Source: https://www.macrotrends.net/
The main reason for this is that unlike America and most of western Europe, Asia is not being run by retards. They invest in building more power plants and making conditions more conducive for businesses. While in the West, uneducated individuals claiming to be scientists go on about Greentech that will take them back to the stone age era.
Lastly, interests should be close to 7% if inflation were such an issue. The latest inflation data indicates that inflation was at 7%, so real yields are negative 5 per cent as interest rates are roughly in the 2 per cent range.
China lowered rates, while America and Europe are planning on raising interest rates, all because raw greed and stupidity trumped logic. There is simply no way the West will regain its foothold over Asia. Asia is now set to win the Economic war for several decades.

Last week bullish sentiment dropped to 21. Compare this to the Meltdown phase in 2020

• Jan 7, 2020 Bullish sentiment = 38
• Feb 11th 2020 Bullihs setiment = 34
• In the March 6, 2020 update Bullish sentiment stood at 37
• April 7th, 2020 update Bullish sentiment = 34
• May 14, 2020 Bullish sentiment = 24
• June 12, 2020 bullish sentiment = 33

While last week's numbers were low, this week's bullish sentiment stands at a mouth-watering 18%. This is one of the lowest readings in years, and it appears it is even lower than during the Pandemic phase of 2020.
The gauge in the idiot's index (image has not been completed yet) has almost swung fully into the bullish zone. Intelligent individuals are panicking like no tomorrow, so this is a great intermediate buy signal.
With bullish sentiment trading at almost unheard of levels and the number of new 52-week highs trading close to 12-month lows (close to the 0% zone), it suggests fear and uncertainty are the dominant emotions at play. Last but not, least too many experts are jumping on the sky is falling AKA the markets are going to crash bandwagon. Hence, a bottom is probably close at hand.

GOOGL is moving into the extreme to insanely oversold ranges. When it does, we will issue an options trade on it. We will be using LEAPS. Other stocks that look good for LEAP plays are AMD (at 120), INTC, MSFT (280 to 290 ranges) and FB (in the 280 to 290 ranges, possibly up to 300),

[Yodean]

Last well bullish sentiment dropped to 21. Compare this to the Meltdown phase in 2020

• Jan 7, 2020 Bullish sentiment = 38
• Feb 11th 2020 Bullihs setiment = 34
• In the March 6, 2020 update Bullish sentiment stood at 37
• April 7th, 2020 update Bullish sentiment = 34
• May 14, 2020 Bullish sentiment = 24
• June 12, 2020 bullish sentiment = 33

While last week's numbers were low, this week's bullish sentiment stands at a mouth-watering 18%. This is one of the lowest readings in years, and it appears it is even lower than during the Pandemic phase of 2020.

GOOGL is moving into the extreme to insanely oversold ranges. When it does, we will issue an options trade on it. We will be using LEAPS. Other stocks that look good for LEAP plays are AMD (at 120), INTC, MSFT (280 to 290 ranges) and FB (in the 280 to 290 ranges, possibly up to 300),

@BossNinja: that post is pure gold, or even spot BTC. Been backing up and loading up the truck the last few days while swimming through a Sea of Red (SOR) in this Kali Yuga Metaverse.

[bpcw]

I'll second that, very informative Sol!

I do wonder how much is stupidity though and how much is by design!

[MarkD]

Before CV I did not trade individual securities, preferring to use ETFs in my regular and IRA accounts. Even after the initial bottom in March 2020 I held onto that process. Around the end of June 2020 my mindset shifted as did my allocations to individual securities.

Having been a member continously since around 2015 I was not following the advice of this paid service. My practice was to hold liquid ETFs and time from TI's signals.

ATM, my first account is up over 30% over the past 19 months, and includes all Blazer options (missed a few entries, but very few). Another using mostly AI picks is up 22% since transitioning during the initiation of AI. Both accounts have less than 20%, likely 10%, of other securities, plus cash.

In my opinion, since this was a transition period, it's not even a full cycle yet. But the process appears to have worked for my situation. And at the highs, OMG. We'll revisit those in a few more months.

[Eric]

The main reason for this is that unlike America and most of western Europe, Asia is not being run by retards. They invest in building more power plants and making conditions more conducive for businesses. While in the West, uneducated individuals claiming to be scientists go on about Greentech that will take them back to the stone age era.

Motive may be irrelevant as the result is the same, but I don't think the west is necessarily run by retards...I think the coalition knows full well that "green" policies cripple economies (it's not a bug, it's a feature). The coalition also knows the fear of the invisible boogeyman of impossibly exaggerated "climate disaster" can be used to completely control a significant portion of the actual humans that cast legitimate ballots for Brandon. The "coalition" consists of the W.E.F. whom are simply playing a game, a bunch of people that simply hate the west (tribalism), and "The Thirty Tyrants" whom are willing to do literally anything for personal enrichment. Granted there are a lot of retards, but they are low level puppets, not the puppeteers.

[harryg]

Strong turnaround yesterday afternoon was preceded by a VIX >38.

[Yodean]

Strong turnaround yesterday afternoon was preceded by a VIX >38.

For me, this usually means "buy," in a primary degree bull market.

[SOL]

Strong turnaround yesterday afternoon was preceded by a VIX >38.

For me, this usually means "buy," in a primary degree bull market.

When Fear is running amok, opportunity is knocking full force. Only those that understand can win and not only in the markets but both in and out of the markets.

[outof thebox]

Strong turnaround yesterday afternoon was preceded by a VIX >38.

For me, this usually means "buy," in a primary degree bull market.

Agree I added more TQQQ yesterday and purchased several other strong stocks or stocks that look good, like CCMP, SPLK, CYBR, a bit of FB, etc

BTW Yodean did you notice that Ninja Avatar has some serious leg muscles SOL must have thought of you when making that Avatar

[AstuteShift]

It’s amazing how scared the masses are, even more frightened than the March 2020 hysteria

Markets crashing should be viewed like clothes shopping, relaxed, fun and getting the best price. Also have a pretty girl by you isn’t so bad either too

[Yodean]

BTW Yodean did you notice that Ninja Avatar has some serious leg muscles SOL must have thought of you when making that Avatar

@FreeNinja:

Tbh, I do like the TIT's Ninja avatar except for two things:

1) I like using bare hands to fight, not weapons.

2) I prefer not to have an avatar with a mask on.

[bpcw]

Wouldn't be suprised to see a turnaround after the fed announcement tomorrow whatever they say, sell the rumour buy the news type of moment.

[SOL]

BTW Yodean did you notice that Ninja Avatar has some serious leg muscles SOL must have thought of you when making that Avatar

@FreeNinja:

Tbh, I do like the TIT's Ninja avatar except for two things:

1) I like using bare hands to fight, not weapons.

2) I prefer not to have an avatar with a mask on.

Yodean since you like that Black belt dude. i had our guy make some images for you where it could be your main Avatar. maybe this way you can have your cake and your pie. I will ask him to work on some more but see if you like these four

[harryg]

Tbh, I do like the TIT's Ninja avatar except for two things:
1) I like using bare hands to fight, not weapons.
2) I prefer not to have an avatar with a mask on.

ninja2.jpg

[Yodean]

Thanks Sol!

I like the last of the four options - looks quite fabulous, actually - the one where the Blackbelt is part of the Go board.

If I were more tech.-savvy, I would even try to make an NFT out of it ...