Fed policy reversal is another thing altogether.
Rules Number One and Two are immutable and eternal.
Don’t Fight the Fed.
The trend is your friend.
Here’s the ES, S&P 24 hour fugutures as of 9:50 AM in Paris and Frankfart, 8:50 in Londone, and 3:50 in New Yak. US traders will wake up to a surprise, except those on the west coast who stayed up late.
Here’s a question. What does a megaphone pattern at a low mean? I can’t recall seeing that before. They’re common on the way up and at tops of course. But at lows? If you remember one, post a chart.
Many tanks!
Meanwhile, the BoE intervention on British Gilt, not to be confused with Catholic guilt or Jewish guilt, ran into sellers at 97.25 on their fugutures. The hourly chart is worth watching. The 97.50-98.50 gap remains unfilled. Something to watch this morning.
Needless to say, a failure to clear this would require coordinated multinational intervention when this collapse ignites contagion. When the margin man comes calling, you sell whatever is in the kitchen sink. That includes particularly US Treasuries and US stocks. Watch the 4% level on the 10 year. In the short run, it should hold, but if not, I’d look for 4.40 fast.
Markets Face Catastrophe as Dealers Mitigate Too Little Too Late
Meanwhile, back at the big picture:
- Swing Trade Screens – Getting Shorter, Life Must be Lived! September 27, 2022
- Stock Market in Crash Mode September 26, 2022
- Markets Face Catastrophe as Dealers Mitigate Too Little Too Late September 26, 2022
- Small Comfort for Gold Holders September 23, 2022
- Fed Speeds Into Dead Man’s Curve, More Black Tuesdays Ahead September 15, 2022
- There Will Be More Black Tuesdays September 14, 2022
- Withholding Tax Collections Collapsed in August But BLS Data Won’t Show It September 2, 2022
- Warnings of August Liquidity Crash Come to Fruition – Here’s What to Do August 28, 2022
- Has Rule Number One Been Repealed? August 18, 2022
- “As Good as It Gets” Was Good While It Lasted August 6, 2022
- Treasury Confirms Supply Tsunami We Expected – Will Obliterate Everything August 3, 2022
If you’re serious about the underlying forces of supply and demand that drive the markets, join me!
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