Risk-On Vs. Liquidity Squeeze

S&P 500 didn‘t look back at Monday‘s lows, bonds were pushing higher while the dollar retreated to my 111.50 support before stabilizing. Also junk bonds had trouble extending gains in the latter half of yesterday‘s session while long-dated Treasuries retreated intraday to a more neutral (practically doji) close. While bonds hesitated, commodities and especially precious metals did well – the turn looks here as silver with gold are looking at which other central bank‘s bluff would be called the way Bank of England‘s was, forcing UK to do an about-face, and exchange fighting inflation with (allegedly temporary) unlimited money printing to support gilts and pound.

Image and article originally from www.barchart.com. Read the original article here.