Whack a Mole Boing Boing 12/15/20

It’s Fed QE MBS settlement week. You can’t keep a market down for long when those billions and billions get pumped into dealer accounts.

But this isn’t your father’s MBS setttlement week. And it’s also Fed resubstantiation time. Lots of crosswinds.

The hourly chart is a noisy mess. Lots of action. No movement. It’s the mother of all meat grinders, as trading ranges tend to be. The idea of orderly “channelingstocks.com” markets is long dead.

So we had a double bottom overnight. The decline made a higher low. An uptrend from November 30 remains intact. How far will this rally get? There are no projections yet, and all the upside cycle projections yesterday were pie in the sky. The potential resistance levels to watch for signs of reversal this morning are around 3665, 3675, and 3681.

A reversal from those levels would just signal more churning until the broader range is broken. If cleared, then the next target would be 3700 again.

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Join me during the trading day at the Stool Pigeons Wire! 

For the big picture- Try Try Again, Extended Market Hits Long Term Resistance Trend.

Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish LiquidityTrader.com, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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