Below is a great analysis by Warren Pollock of the current situation. Although he doesn't mention money supply or the demand to hold cash, his presentation dovetails with my analysis. The declining volume in the stock market is a signal that there is no new money to back up the present stock market run and that those who are willing to move from cash to the stock market has just about dried up. Further, his gold chart shows the gold ceiling we are bumping up against, unless foreigners really start bailing out of the dollar, gold is likely to dip here and the dollar is likely to strengthen. This is a must watch video for traders.
(Thanks to Clint Athey)
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