Saturn-Uranus Square Alignment 2021 – 2022: Yields About To Blast-Off

https://cms.zerohedge.com/s3/files/inline-images/real%202.21.jpg?itok=kuxTZuWM

For many months, traders and strategists have been warning – and dreading – a sharp spike higher in both nominal yields and real interest rates, and last week, during the Saturn-Uranus Square Alignment (Feb 17th), they finally got it with Real Yields finally surging the most since March 2020, and joining the historic Post-Covid rally in Breakevens that sent 10-Year Treasury yields to 1.36%, the highest level since the Covid Pandemic and just 14 basis points away from the 1.50% level that Nomura’s Masanari Takada predicted would hammer the stock market force US equities (the S&P 500) to adjust downward by 10% or more, as systematic, quant and Commodity Trading Advisor start actively shorting 10-Y U.S. Treasury futures.

https://cms.zerohedge.com/s3/files/inline-images/2021-02-21%20%282%29.jpg?itok=HKPiCqcO

The sharp rise in the ratio between the prices of copper and gold, which has a solid track record predicting yields in the bond market. Keep in mind that the relationship typically works because copper is a cyclical commodity used explicitly for industrial consumption, and gold is a safe-haven of wealth that is sensitive to inflation and interest rates. A quick look at the chart below suggests that the 10-Year Real Yield in Treasuries should be at least a whopping 3.0%!

Prediction The 10-Year Real Yield at its present rate of 1.36% will begin to spike and accelerate higher breaching the 1.50% barrier moving to 3.0% (to reach parity with the Copper/Gold ratio) between now and the next iteration of the Saturn-Uranus square alignment in June 2021 resulting in a major valuation reset.

Related Articles

Responses

      1. We know if Crack up boom occurs every asset drops .  60K Bitcoin would drop to 30K in  1 day  just like 50% one drop in March as every asset is correlated including Gold. 

  1. Fundamental tech stock valuations are also based on profits in the future — if there is higher interest rates in the future, there will be less profit and the stock price will get a haircut. For companies that rely on cheap credit for growth, well, borrowing will cost more, and the debt load will be an issue.

    1. About the crack up boom: from the book “Picking Winners” by Peter Hadekel, “changes in the nature of financial products contributed to the speed of the quick drop. ETFs which mimic the performance of indexes like the S&P500, were a major force in the market plunge of 2020. “When people wanted to sell their holdings, the easiest way was to sell an ETF”… That meant the whole basket of stocks went down. In previous times, people used to be able to take refuge in defensive stocks like utilities that weren’t volatile and paid a good dividend. This didn’t happen because the way most people reacted was to sell the whole index, utilities included. Everything went down at the same time, and there was no place to hide”.