Market Update – The dollar rally resumes and the petrodollar myth; asset markets showing renewed strength; Facebook may take over the crypto sphere

I have uploaded a new market update podcast for May 13, 2018. Click here to go to the show archives page to listen or you can listen on the link below.  I have included links to relevant articles and media on the Show Archives page.  The latest show is on the top of the page.

-S&P 600 Small Cap Index puts in a new all-time high on Friday, Russell 2000 close to new all-time high. Small cap stocks and tech outperforming S&P 500 and Dow, which are more dependent on cost of capital.
-Oil rising as costs of capital rise. XOP finally showing strength as more are convinced of the longevity of oil’s price rise.
-Small spec long on S&P eminis continue to grow. They are never right in the long run. Commercial shorts remain elevated.
-Gold Commercials covered a big part of their shorts as the dollar rallied. Gold could weaken if dollar rallies further, but 1300 looks firm.
-This current monetary system works well to those who understand it. Ask the landlords, private equity firms and wealthy if this system is broken and they will likely say it is fine. Ask the broke millennials who live at home with mom if it works and they will say otherwise.
-Beware of the charlatans and shillers of gloom and doom.  If the “petrodollar” is collapsing we should be buying income-producing assets. The petrodollar cannot collapse and asset prices fall at the same time. The alt-financial press cannot have it both ways.
-Chinese real estate investors are smarter than the patriots as they know what the dollar is doing and are buying to hold with their “worthless” dollars.
-The Crypto price fade coincides with Facebook’s announcement of their entry into blockchain and cryptocurrencies. I analyzed this threat a few weeks ago. The large corporations, with their strength of users, can overtake the cryptos with convenience and practicality.
-The crypto shilling reminds me of the real estate shilling of last decade and gold and silver of the beginning of this decade.