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Yield Curve

|Includes: GDX, GLD, SHV, SHY, iShares 20+ Year Treasury Bond ETF (TLT), UUP

The yield curve is an old theme that I have not mentioned in a while because to me it is a given that confidence in monetary managers is being lost and the message of the unruly yield curve has long since been driven home. But Mish has come out with an article about it centering on this piece from Bloomberg, and if you are unclear about what a rising yield curve means, you should read them both.

Meanwhile, chartus geekus has worked up another confusing, busy bunch of lines and squiggles that attempts to show why I maintain a long gold/gold stocks stance vs. shorts on certain markets. Get Zen-like and reflect up on it. The most extreme curve, the 30 year / 3 mo. t-bill, is off the hook and out of control. But the more 'free' market oriented 30 year/5 year has broken out as well (see lower panel).

Folks, this thing is broken no matter what the wizard protests. The little doggie has pulled back the curtain...

Disclosure: Long gold sector, long usd, short denial