Opportunistic  Disciplined ~ Selective ~ Game Plan ~ Gratitude ~ May the force be with you as the markets become increasingly difficult...

Featured Chart
Sentiment / Socionomics
The Daily Sentiment Index in %BULLS as of February 17th (Friday's Close)

T-Bonds Instrument % BULLS - RAW 5 DMA 10 DMA 21 DMA
TR T-Bonds 26.0 22.4 25.9 24.3
TY T-Notes 26.0 24.8 25.3 21.9
ED EuroDollars 48.0 45.0 45.0 43.9
SP S&P 86.0 87.6 83.3 77.2
ND Nasdaq 85.0 86.4 80.9 74.8
VX Vix 16.0 10.2 11.7 12.6
SF CHF 24.0 24.0 27.6 31.9
EU Euro 21.0 20.6 22.6 29.3
JY JPY 37.0 31.4 35.9 37.9
BP GBP 22.0 24.6 25.2 21.8
CD CAD 61.0 60.4 58.5 58.7
AD AUD 65.0 66.4 65.8 62.5
NZ NZD 61.0 62.4 62.6 61.5
DI DXY 75.0 75.4 73.2 67.0
MX MXN 43.0 48.0 46.6 39.9
CL Crude 61.0 58.2 57.2 59.0
HO Heating Oil 73.0 73.6 75.4 76.6
RB RBOB Gasoline 56.0 58.4 59.8 61.2
NG Nat Gas 47.0 50.0 54.8 59.9
GC Gold 62.0 61.2 60.2 45.9
SI Silver 51.0 51.8 51.9 43.0
PL Platinum 63.0 61.8 61.3 52.9
PA Palladium 69.0 71.4 69.2 63.0
CP Copper 65.0 69.0 68.5 70.1
C Corn 61.0 68.4 67.9 62.9
W Wheat 40.0 47.8 43.7 41.2
O Oats 85.0 80.8 81.7 82.1
S Soybean 46.0 55.6 59.6 61.2
BO Soybean Oil 19.0 27.0 31.1 32.1
SM Soybean Meal 62.0 65.2 62.2 58.7
OJ OJ 25.0 20.8 19.7 16.2
CF Coffee 31.0 26.8 27.1 34.6
CO Cocoa 24.0 20.8 14.3 13.8
SU Sugar 46.0 47.8 50.9 49.2
LB Lumber 78.0 80.4 85.9 75.7
NY Cotton 62.0 74.4 75.3 79.5
LC Live Cattle 53.0 47.0 52.7 61.8
LH Lean Hogs 76.0 74.2 77.2 76.3
CR CRB Index 79.0 78.6 78.8 79.0
NK Nikkei 53.0 60.6 56.4 60.9
The contrary investor studies crowd behavior in the stock market and aims to profit from particular conditions where investors act on their emotions rather than reason. Such extremes of fear and greed are often seen at major market turning points, providing the astute contrarian with opportunities to both enter and exit the market. The DSI or Daily Sentiment Index is a proprietary sentiment indicator from MBH Commodities in Chicago. The DSI shouldn’t be used as the start and end of a trading plan; Market sentiment is a component to a trade set-up / program. In other words, it is not a direct nor specific call to action but rather a sentiment based indicator that alerts traders to potential action - a timing trigger.
What's New
{‡} European Equity Indices Near-Term {‡} 02/20/2017 5:37AM
<[MMM]> S&P (Maturing Waves, HIGH UNsecured) - Fixed Inc (US10YY to 2.399%, Wave 'e' Triangle? Or Not?) - FX (DXY & EURO, USD/YEN & EUR/JPY, USD/RUR and AUD/NZD) <[MMM]> 02/17/2017 10:36AM
{‡} European Equity Indices Near-Term {‡} 02/17/2017 7:29AM
<[MMM]> Major Macro Market Update: S&P / Nikkei 225 (+91% BULLs, NO Sign Exhaustion / Reversal 2375+-10 Next) - Fixed Inc (US10YY - IT10YY) - FX (USD BULL Reload Still In Money But UGH) <[MMM]> 02/16/2017 11:15AM
<{ZAR}> USD/ZAR Brief: TAG > We've Reviewed And Have NEW Information, We Will NOT BE Catching The Falling Dagger <{ZAR}> 02/15/2017 2:31PM
<[MMM]> Major Macro Market Brief: USD/EM 'Action / Reaction' Happening - Trap?!? USD - DXY (Reloaded Long, We're In It To Win It) - Fixed Inc (Long 'TBT', 5s30s Not Responding, Reloaded Tactical Long, Stoploss to 'X') <[MMM]> 02/15/2017 10:14AM
<{CL}> Crude Oil Brief ('IB' AUD/NZD comment too) : TAG's Moved To 'CLM7' = June Crude Oil (WTI) {CL}> 02/14/2017 3:54PM
<{§}> FX aka The Land of Opportunity Brief: DXY 99.23 Low / EURO 1.0829 High Secured, TAG Considers 'Tradable' Extremes <{§}> 02/14/2017 10:57AM
<{%}> Fixed Income Update: The 'Lay-Of-The-Land' For US 5-10-30 YY, 5s30s Curve, IT 10 YY <{%}> 02/14/2017 9:52AM
<[MMM]> Major Macro Market Brief: 'FX' (We're Reloaded LONG USD - DXY = 57.6% EUR, SHORT EURO & Kiwi Ag USD and AUD and CAD, 1/4th LONG USD/RUR) <[MMM]> 02/13/2017 11:54AM
<[MMM]> Major Macro Market Update: S&P 500 (Testing TAG 'Zone' Dip Soon) - Nikkei 225 (Back To Highs, More Coming YET 20,000 / 20,250+ UNlikely Soon) - SHCOMP (UNexpected Lurch Above TAG Resistance Suggests Prudence) <[MMM]> 02/13/2017 9:59AM
{‡} European Equity Indices Near-Term {‡} 02/13/2017 3:55AM
<[MMM]> Major Macro Market Brief: S&P 500 (Hello S&P, Here We Are > 2320+-5, NO HURRY...) - FX (USD-DXY Bull Hanging On, We're LONG... 'EM' Trap Coming? Watching TRY, ZAR, RUR, ILS & MXN - Fixed Inc (IT10YY - 5s30s) <[MMM]> 02/10/2017 9:53AM
{‡} European Equity Indices Near-Term {‡} 02/10/2017 6:53AM
<[MMM]> Major Macro Market Brief: S&P 500 (2309, Closer... 2320+-5 Review / Reassess / Risks Grow NT) - Misc FX (USD/YEN, USD/CAD) - IT10YY Too (NEW 'BTP' Short, Risk -6 Bps For +22 / +35 Bps) <[MMM]> 02/09/2017 2:28PM
<{§}> FX aka The Land of Opportunity: COMMOD CCYs, TAG's Feeling BEARish, We're Small SHORT Ozzy (new this week), ADDing To Existing LONG AUD/NZD = SHORT Kiwi, Our 'Ol Friend' & Nemesis <{§}> 02/09/2017 10:43AM
<[MMM]> 'MMM' Major Macro Markets Brief: S&P 500 (UNCH, Tick Tock, -75 to -100 Against 2320+-5) - Fixed Inc (IT10YYields & US5s30s Curve) <[MMM]> 02/09/2017 9:13AM
<{§}> FX Special ~ ¥EN aka House Of Pain - NEW Micro Term Pivot - LONG USD/JPY ABOVE 'X' - EUR/JPY aka The Eye Gouger - Do Not ASSume (EURO & EUR/GBP too)<{§}> 02/08/2017 2:41PM
<{XAG}> Spot Gold Review, Top > Down, Big Picture On Down, TAG's Long Term Outlook Remains On Track <{XAG}> 02/08/2017 11:07AM
<{§}> FX aka The Land of Opportunity: Miscellaneous 'CCY' Pairs, from DXY to EUR(57.6%) / USD to EUR/GBP to USD/RUR <{§}> DXY 02/08/2017 10:12AM
<[MMM]> Major Macro Market Brief: S&Pzzz (Back To Highs, Steady, 2320+-5 Caps Feb) - Fixed Inc (Plan 'B' = Yields Dig Deeper, Maybe, 5s30s) - EUR/USD - EUR/GBP - USD/RUR <[MMM]> 02/08/2017 9:35AM
"Vox Populi" - The Voice of the People

Jan's 'Devo' 'Whip it' to TAG's February 'Miracle Tone 852 Hz | Awaken Crystal Clear Intuition Now | Meditation Solfeggio Music' ~~~~~OHM ~~~~~

 

Detach from the outcome ~  Relinquish your rigid attachment to a specific result and live in the wisdom of uncertainty. Attachment is based on fear and insecurity, while detachment is based on the unquestioning belief in the power of your true Self. Intend for everything to work out as it should, then let go and allow opportunities and openings to come your way.
 
A TAG favorite ~ La Desiderata ~

Go placidly amidst the noise and haste, and remember what peace there may be in silence. As far as possible without surrender be on good terms with all persons. Speak your truth quietly and clearly; and listen to others, even the dull and the ignorant; they too have their story.

Avoid loud and aggressive persons, they are vexatious to the spirit. If you compare yourself with others, you may become vain or bitter; for always there will be greater and lesser persons than yourself.

Enjoy your achievements as well as your plans. Keep interested in your own career, however humble; it is a real possession in the changing fortunes of time.

Exercise caution in your business affairs; for the world is full of trickery. But let this not blind you to what virtue there is; many persons strive for high ideals; and everywhere life is full of heroism.

Be yourself. Especially, do not feign affection. Neither be cynical about love; for in the face of all aridity and disenchantment it is as perennial as the grass.

Take kindly the counsel of the years, gracefully surrendering the things of youth. Nurture strength of spirit to shield you in sudden misfortune. But do not distress yourself with dark imaginings. Many fears are born of fatigue and loneliness.

Beyond a wholesome discipline, be gentle with yourself. You are a child of the universe, no less than the trees and the stars; you have a right to be here.

And whether or not it is clear to you, no doubt the universe is unfolding as it should. Therefore be at peace with God, whatever you conceive Him to be, and whatever your labours and aspirations, in the noisy confusion of life keep peace with your soul. With all its shams, drudgery, and broken dreams, it is still a beautiful world. Be cheerful.

Strive to be happy.

 

Socionomics - Most economists, historians and sociologists presume that events determine society's mood. But socionomics hypothesizes the OPPOSITE: that social mood determines the character of social events. The events of history - such as investment booms ands busts, political events, macroeconomic trends and even peace and war - are the products of a naturally occurring pattern of social mood fluctuation. Such events, therefore, are not randomly distributed, as is commonly believed, but are in fact probabilistically predictable. Soconomics also posits that the stock market is the best available meter of a society's aggregate mood, that news is irrelevant to social mood, and that financial and economic decision-making are fundamentally different in that financial decisions are motivated by the herding impulse while economic choices are guided by supply and demand...

To survive, we need a temperate client to live within. DEFLATION or INFLATION can kill an economy. Empires do not die by HYPERINFLATION – that is reserved for the fringe. When an empire dies, it historically has ALWAYS been by DEFLATION. How. Real wealth is driven from the ABOVEGROUND economy into the UNDERGROUND economy where it is hoarded and tucked away. This is why we find hoards of Roman coins. This reduces the VELOCITY of money and commerce is reduced. This is ALWAYS AND WITHOUT EXCEPTION how empires die. This is why there was scrip issued in the United States during the Great Depression. The VELOCITY of money came to a halt. The British Empire did not die of HYPERINFLATION. The pound collapsed in value. It did not inflate into oblivion. The British Empire simply rolled over and died. The decline of the sterling silver penny of England was no different a path than the decline and fall of Rome. The United States will follow the same path - Martin Armstrong

“Capitalism was an economic system in which the private sector drove the economic process through saving, capital accumulation, and investment. The government’s role was very limited. The United States has not had that kind of economic system for decades… Almost all the major industries are subsidized in one way or the other by the government and almost half the households receive some kind of government assistance… the economic system is no longer driven by savings and investment. Instead, it is driven by borrowing and consumption. This is not capitalism. Market forces no longer drive the economy. The current system is government- directed, but not planned… deficit spending and fiat money have allowed the government to satisfy all those competing demands for more than a generation.”– Richard Dunca

So it is with monetary debasement, as Keynes understood deeply (so deeply, in fact, that it?s ironic so many of today's crude Keynesians support QE so enthusiastically). In 1921 he said:

By a continuing process of inflation, Governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some …. Those to whom the system brings windfalls …. become “profiteers” who are the object of the hatred … the process of wealth-getting degenerates into a gamble and a lottery .. Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose

Hayek has made the difference between the effects of deflation and inflation crystal-clear: “… but it is not that certain that in the long run deflation is more harmful than inflation. Because moderate inflation is always pleasant as and when it is happening, whereas deflation is direct and painful. There is no need to take precaution against a situation whose unpleasant effects can be felt immediately and sharply; however, precaution is necessary for a measure that is immediately pleasant or helps alleviate problems but that entails a much more substantial damage which can only be felt later. The difference is that in case of inflation, the pleasant surprise comes first and is followed by the reaction later, whereas in case of deflation the first effect on business activity is depressive.” ~~ F.A. Hayek, “Verfassung der Freiheit” (The Constitution of Liberty), seen in (Problems of the established central bank system – free banking as alternative?), Wolf von Laer

 

“By the Law of Periodical Repetition, everything which has happened once must happen again, and again, and again -- and not capriciously, but at regular periods, and each thing in its own period, not another’s, and each obeying its own law ... The same Nature which delights in periodical repetition in the sky is the Nature which orders the affairs of the earth. Let us not underrate the value of that hint." -- Mark Twain