Proof “Deflation” is taking place at the Fed

 feddeflationjan8

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In your opinion, does the Fed prefer "Inflation or Deflation?" The picture above proves that Deflation is taking place at the Fed.

On a more serious note regarding the Inflation/Deflation theme, many feel the Fed's policies will lead to strong inflation. From a stock market persective, inflation is taking place, as the Dow and S&P 500 are at/near all-time highs.

Another asset class can't say the same thing...see chart below

crbbreakingbelowdescendingtrianglesupportsept18

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The Thompson Reuters Commodity Index a few months ago broke below a 13-year support line (left chart), then rallied to kiss old support as resistance and has fallen hard since.

On a shorter term basis (right chart) the index could be breaking support of this bearish descending triangle pattern. 

I suspect that the Fed would rather fight excess inflation over deflation. In reality, none of has much control over inflation/deflation, other than we can make adjustments to our portfolios.

A further breakdown of support in the right chart would suggest that lower prices in commodities will be the trend. Understanding this trend could be important as Gold & Silver could be breaking 13-year support and Crude Oil is testing a 5-year support line.

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Bulls & Bears favorite way of looking at Small Caps

 russellinatightspotsept17

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See full article  (Here)  at See It Markets.com  

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Gold bugs index is about to breakout from this pattern-

 goldbugspennantpatternsept17

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The Gold Bugs index remains above support that dates back 10-years. 

Over the past year and a half, the index has created a pennant pattern, a series of lower highs and high lows, teasing both the bulls and bears. As you can see, this pattern will be coming to an end soon. 

Pennant patterns are popular for suggesting that a large move is ahead, yet which direction is a different story. This pattern does fall under the continuation of trend category, anything is possible though!

After years of disappointment, bullish miner investors should be treated to some fun upside-action if the pattern breaks out to the upside.  The best plan for a pennant most often is to set back and watch for the breakout and then follow it.

This pattern would appear investors won't have to wait long for the outcome.

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