When I look at this chart it appears that U.S. treasuries are not always inversely correlated to the stock market. When the market crashed in 2008 and 2009, people did sell stocks and bought up treasuries. But in the bull market since the 2009 low, stocks and treasuries rallied have together from 2011 until last year July, when an inverse relationship returned. It appears by looking at this chart that there is some other force driving the top of the U.S. treasury market and stock market rally. The money going into stocks since 2009 certainly did not come from people selling bonds, although that could be the fuel that drives the market even higher from here on.

SPX outlined in black.

“Subversion to State Power” in China is an offense for which the state can send a person to jail for at least five years. Subversion to State Power = Contempt of Court? Refusing forced Vaccinations is subversion to state power.

Is Capitalism Humane? Capitalism is not humane or inhumane, socialism is not humane or inhumane per se, but capitalism lends itself to the free rein of the more humane values of human beings. It tends to develop a climate of higher moral responsibility and to the greater achievement in every realm of human understanding.  The great virtue of the market is that people who hate each other can come together without any problem in the market. A loaf of bread may have been made by someone of disparate political views or of a different race, by people who may hate each other in any other context, but can work together in the production of that loaf of bread. In this way, capitalism promotes peace and cooperation.

In contrast, one of the effects of the welfare state is that it promotes regionalism, division, and ethnic divisiveness. “We must be fearful of the extent to which the welfare state is encroaching on our freedom,” Friedman said. “Encroaching on it indirectly by its fiscal effects. Putting us in a situation where the fiscal crisis that it tends to create, as in Britain, as in New York City, interferes with our freedom. Interfering with our freedom through which we become subject to bureaucratic control.”

He was so right on capitalism, and still is.

1:06 pm PST. When it appeared Trump would not receive enough votes the Dow began to sell off. When Trump pulled the bill, SPY recovered strongly into the close. I usually do not trade the news, but today I think it made a short-term difference. UUP made a marginal new low on positive divergence and I think it could rally to 25.85. The miners sold off into the close as did treasuries and I stopped out of JNUG with a loss. Corporate bonds rallied strongly. Have a great weekend!

12:39 pm PST. stopped out the rest SPY puts -.01, bounce a lot stronger than expected.

12:26 pm PST. Sold AIG puts +65%.

12:22 pm PST. Scaled out of some SPY puts +80%.

9:25 am PST. The Dow is not looking too good. I think it could go to 20,222.

9:11 am PST. Stopped out SPY calls -.03. TLT was starting to look bullish so I go out just before that spike down, phew.

8:28 am PST. My upside target for SLV is 17.11.

8:24am PST. UUP needs to make a final wave low to 25.60ish.

7:57 am PST. Freeport is in the tightest range ever and I think it is going to break to the upside soon.