Post from this morning

Post from this morning on the CoghlanCapital service that follows my trades. I think it’s how things are going to play out. I could back it up with tons of charts and data across commodities, FX and indices but won’t have time right now.

03:36:40 JFarro: This Fed waiting game has brought average lot size on ES down to lowest on record. Average is now 1.2. Crazy. Here’s a simple fact that no one is talking about. Every manager I know is sitting in cash allocation waiting for fed (to get long). Where is this money going to go? I don’t think it will be bonds.. So where? There’s basically two games in town and with Dollar weakness looking to seal the deal for a nice long term commodity bull-run that begins now there’s only equities.. Starting to look like we finally get actual commodity inflation that the CB’s have been so desperate to create for so long. But the beginning of this cycle shouldn’t see it effect growth for a while. But then.. Inflation and bear market? Everything I am seeing points to this.. But in the mean time I am betting we see a flood of this sidelines cash into equities, lesser so commodities..then with time parabolic commodity inflation WITH slowing growth.. Seems like a long-shot now..but it’s what I see from here.
The best charting teacher I know:
The Morning Analysis Service by Paul Coghlan

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