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One Bank, One Intervention, is One Thing

This is a syndicated repost published with the permission of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

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.

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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!

Stock Market in Crash Mode

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.

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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.

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Markets Face Catastrophe as Dealers Mitigate Too Little Too Late

Meanwhile, back at the big picture:

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