Weekly Summary

Short-term: Neutral
Intermediate-term: Neutral

Technical indicators are saying nothing about the market. The US debt kerfuffle is now coming to the fore again. That will likely drive markets all next week – creating a huge problem for the dollar and Treasuries and a huge tailwind for gold, swissies, yen.

Other markets – commodities, equities, etc – should be far less affected since this news event is most likely a very temporary one and will be reversed whenever the debt ceiling is raised. However, the trading will likely provide a bit of an indicator as to which direction those markets go once the summer ends. If commodities and other cyclical assets do well, it likely means that we have another leg up. If bonds do well, then watch out come Labor Day. If our politicians are truly so incompetent as to default on US debt ( a fiat currency over which govt retains a legal production monopoly), then the only assets that matter are bullets and beans.

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