NASDAQ volatility picking up with earnings showing major profits and higher operational costs. Gold the Doomsday Hedge losing to the Inflation Hedge the U.S. Dollar. But for how long? The War in Ukraine is very concerning.
The Doomsday hedge gold is losing its shine to the Inflation hedge which is the U.S. Dollar, as the markets digest a misprice of tech stocks on earnings, which you would expect as prices are going up along with operational costs. In other worlds, you'll be paying more for your laptops, computers and seeing more and more ads on Facebook and the like, kinda like a last gasp play before the Fed grinds the U.S. Dollar higher, as export markets in America begin to crunch, along side import markets falling on supply chain 'chaos'. Volatility before the stagflation freeze? Chart 1, shows the NASDAQ 100 futures blue line and the NASDAQ 100 Volatility index, note the inversion when Volatility rises the NASDAQ sells and vis versa
More concerning, is the Russian/West situation i.e Ukraine War which may be quickly morphing from a Cold War to a Hot War and we don't need a Meta Universe headset to play. This is real.
So, Gold has taken a backseat, from its high of $2000 on the 19th April 2022, the sacred and rare metal has since dropped to it's support price of $1890 on the 27th April, note with Chart 2. Now holding bids above supports 1844 and 1890 at 1871 . As mentioned, this conflict is spiraling further out of control. Yet, there seems a reluctance in branding this as a new Cold War, that despite the semantics it may offer a distinction in how we are to deal with this economical and more importantly sociological dilemma. It isn't happening, Europe is desperately clinging onto the idea that it is just a geopolitical blip, but I think it is a lot worst than we are all willing to admit.
___
“The futility of everything that comes to us from the media is the inescapable consequence of the absolute inability of that particular stage to remain silent. Music, commercial breaks, news flashes, adverts, news broadcasts, movies, presenters—there is no alternative but to fill the screen; otherwise there would be an irremediable void.... That’s why the slightest technical hitch, the slightest slip on the part of the presenter becomes so exciting, for it reveals the depth of the emptiness squinting out at us through this little window.”
Comments
Post a Comment