Bullish Volatility! 55 EMA has now crossed above the 120. Looking back, this has not occurred since March 4, 2020. The time before that was October 15, 2018!!
This is a historically valid pattern. I've been watching this thing for years and now is the time to stack volatility. The Russians are disconnecting from the internet, inflation is only going to get far worse with grain, wheat, and oil prices skyrocketing and the war only increasing.
Don't overthink it. Are we entering volatile times? Yes. Is the money printer getting turned off? Yes. Is inflation keeping the Fed from saving things this time?... I can't say they won't try, but I can tell you that they have no control over consumer price inflation like food and gas. Their policies only affect asset prices like houses, stocks, and bonds. They have been able to print money however for the last 13 years because they convinced everyone that they were controlling inflation. No they weren't. The global supply chain and ability to get cheap products in days was what was controlling inflation for the last 20-30 years!
WHEN they raise interest rates, it will not lower food inflation because they have nothing to do with each other. The only thing that will help food inflation is a de-escalation in Ukraine. Interest rates effect one's ability to access capital and credit. This ample credit access is not used for food. It's used to buy overpriced real estate and stocks. SO making that access to credit more difficult won't effect food sales, but far moreso house sales.
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.