Happenings in the Far East

Bifurcation, as we have been noting here and with Members, is anywhere and everywhere you look these days: Within sectors (tech), within major economies, across asset classes and global markets. This is the primary driver behind the vast amount of cherry-picking going on right now be it from bulls, bears, doves, or hawks. 

But my main takeaway is that bifurcation itself is an unhealthy circumstance in markets and the economy and ultimately portends a sharp unwind. 

Case in point this morning: We have NVDA and the chips catapulting higher, once again. Meanwhile, the Japanese Yen is getting sold aggressively as the late-April intervention seems within shot amid headlines over the weekend about Norinchukin. 

On the back of these cross-currents, the precious metals and miners are waking up from a multi-week consolidation. 

Silver, below on the metal ETF's weekly chart, is on the move up and out of a tight bull flag pattern. I see no reason to fade this move as many are extremely underweight and extremely apathetic towards the metals and miners, still, especially as NVDA lights up the scoreboard on a daily basis. 

Of course, this was also the case roughly fifty years ago as the NIFTY FIFTY stocks (e.g. IBM) were the hottest things going at the outset of a prolonged inflationary period, right before gold and oil because the best performing overall assets of the 1970s.