Hope to not bore you but it may be important to understand how the market is just reflection of capital moving to safety. Thus why I am LONG TERM BULLISH in markets due to the conflict in middle east (iran/israel) & ukraine.
When war on horizon, interest rates usually go up over time (bonds lose value).
And Capital seeks safety, below is what happened this week.
Notice the following:
- Money went to Apple, Dollar, and Gold with fears of Iran
- Money exited 10Year Bonds
- Capital needed to find somewhere to go
1. AAPL – Seeking Safety
- Has tons of cash
- Money started piling in for safety April 11th (2 days after Bonds High)
- Higher interest rates == more money for Apples cash
- This is big money replacement for bonds was Apple today
- May 7th could re-test the prior low — looking to add more on dips
- Watching: AAPU (leveraged), AAPL (Yield dividend), AAPL (regular stock)
2. Dollar – Seeking Safety
- Dollar up & Gold up?? Yep… money seeking safety!
- April 9th money piled in, same day Bonds fell
3. 10 Year Treasury (Bonds) – Not Safety
- Fell since Apr 9th
- Interest rates going higher due to war == Bonds lose value
- Thus Countries cant sell their debt! (Bonds)
- So money finds where else it can go (Stocks, Commodities, Tangible Goods, Real Estate)
BitCoin Short On Week of May 7th??
- If we get a high on May 7th… it could be a short of the year
- Waiting and watching…
