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Ripple Effect

Overbought Territory, Day 70

Loading ...Addison Wiggin

August 11, 2025 • 1 minute, 21 second read


overboughtStock Market

Overbought Territory, Day 70

August has been a tumultuous month for each of the past 10 years.

Today, one-third of the way through the month, that trend is holding strong. And stocks have now posted their 70th consecutive day without dropping below  the 50-day moving average:

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Markets are having one of their longest periods of technical strength since the start of 2024.

Last week, rising odds for an interest rate cut in September extended the S&P 500 rally.

Fed chair Jerome Powell remains stalwart. So far, only two members of the Fed board of governors have registered dissent and voted for a cut. One of them, Christopher Waller, tops Trump’s list to replace Powell.

Under Trump, anything can happen…

For now, the August surprise is to the upside for stocks.

~ Addison

 

P.S. While stocks continue to trend higher on a potentially weakening economy (jobs report), there’s a good reason. Even without Fed rate cuts, global M2 money supply — aka cash — is also hitting historic highs. Central banks around the world have been printing money like we’re already in a debt crisis.

That bodes well for assets like bitcoin, which jumped back over $120,000 over the weekend – and gold, which broke $3,500 briefly last week.

Hard assets have more room to run – gold is still nowhere near our price estimate.

Keep an eye out, both gold and  bitcoin will likely hold up well in a garden-variety market pullback. In a massive drop, which tends to lead to liquidations across the board, however, all bets are off.

As always, your reader feedback is welcome: feedback@greyswanfraternity.com (We read all emails. Thanks in advance for your contribution.)


Grey Swan Forecast #6: China Annexes Taiwan — Without a Shot Fired

December 26, 2025 • Addison Wiggin

Our forecast will feel obvious in hindsight and controversial in advance — the hallmark of a Grey Swan.

Most analysts we speak to are thinking in terms of the history of Western conflict. 

They expect full-frontal military engagement.

Beijing, from our modest perch, prefers resolution because resolution compounds its power. Why sacrifice the workshop of the world, when cajoling and bribery will do?

Taiwan will not fall.

It will merge.

Grey Swan Forecast #6: China Annexes Taiwan — Without a Shot Fired
Grey Swan Forecast #7: A Global Debt Crisis Will Reprice Democracy

December 24, 2025 • Addison Wiggin

Wars, technology races, and political upheavals — all of them rest on fiscal capacity.

In 2026, that capacity will tighten across the developed world simultaneously. Democracies will discover that generosity financed by debt carries conditions, whether voters approve of them or not.

Bond markets will not shout so much as clear their throats. Repeatedly.

Grey Swan Forecast #7: A Global Debt Crisis Will Reprice Democracy
Seven Grey Swans, One Year Later

December 23, 2025 • Addison Wiggin

Taken together, the seven Grey Swans of 2025 behaved less like isolated events and more like interlocking stories readers already recognize.

The year moved in phases. A sharp April selloff cleared leverage quickly. Policy shifted toward tax relief, lighter regulation, and renewed tolerance for liquidity. Innovations began to slowly dominate the marketplace conversation – from Dollar 2.0 digital assets to AI-powered applications in all manner of commercial enterprises, ranging from airline and hotel bookings to driverless taxis and robots. 

Seven Grey Swans, One Year Later
2025: The Lens We Used — Fire, Transition, and What’s Next… The Boom!

December 22, 2025 • Addison Wiggin

Back in April, when we published what we called the Trump Great Reset Strategy, we described the grand realignment we believed President Trump and his acolytes were embarking on in three phases.

At the time, it read like a conceptual map. As the months passed, it began to feel like a set of operating instructions written in advance of turbulence.

As you can expect, any grandiose plan would get all kinds of blowback… but this year exhibited all manner of Trump Derangement Syndrome on top of the difficulty of steering a sclerotic empire clear of the rocky shores.

The “phases” were never about optimism or pessimism. They were about sequencing — how stress surfaces, how systems adapt, and what must hold before confidence can regenerate. And in the end, what do we do with our money?!

2025: The Lens We Used — Fire, Transition, and What’s Next… The Boom!