The market averages took a breather on Thursday, but the technical indicators, particularly cycle based screening measures, continued to strengthen. One showed the kind of strength normally only associated with the initial days of a significant intermediate upswing.
The release of the Fed meeting minutes propaganda was the ostensible reason for the shakeout in the averages. The Fed always has an ulterior motive with these things. In this case, it was to put the fear of God into speculators who might otherwise want to load up with oil, gold, and agricultural commodities. That might work for a few days, but as the Fed cash flows, it will have to go somewhere. Even if QE were going to end at mid year, 6 months with the Fed pumping $100+ billion a month into Primary Dealer accounts is plenty of time and money for the market’s owners to engineer some serious markups in their inventories.
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