By Richard Russell
The stock market continues to confound serious and seasoned investors. History is being made as investors tear their hair out while attempting to position themselves in this strange environment.
Transports have tested their lows and are moving higher. This action calls for a bottom in the Transports. With the Transports bottoming, the entire stock market is set to move higher.
The dollar is down hard and surprisingly, gold is lower. With the stock market stronger across the board, it may be that the Fed will take heart and produce an interest hike (probably a very small one) later this year. The stock market is telling us that the economy is improving.
Today many people are asking if there is a bubble and if so, where is it? My answer is that the bubble is in the production of fiat currency and I keep one proverb in mind, “no tree grows to the sky.”
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