He really gave it to the bears yesterday. I’m laughing because I had no idea this was coming, but I spent the morning updating my trading alerts. Multiple buys were triggered as soon as the text of his comments hit the tape. All my shorts got covered, and a bunch of longs got opened. So I ended up having a good day indeed.
But beyond that, yesterday was horseshit. Everybody, even you guys who have taken the punishment of my harangues for the last 22 years are all hung up on interest rates, and the Fake Funds target rate. This is a sideshow, a red herring, only relevant to day trading addict punks like ourselves. Interest rates, real market interest rates, like freely traded T-bill yields, are merely a measure of monetary tightness. And monetary tightness is determined by SUPPLY of securities versus demand for those securities. And demand is determined by CAISH! Cold hard, electronic caissse in the trading accounts of dealers and banks and ordinary blokes like Bill Ackman and George Soros, and Teddy Bridgewater, and Tom Brady. Ordinary folks just like you and me. And who makes that CAISH? DA Fed, and it’s Big Three cohorts in crime, Lord Poowell, Pristine LaGuardia, and Ben B Kuroda.
And they ain’t makin any more of it. But the US Treasury, and fellow governments around the world need more of it, and more and more all the time. So they keep issuing gazillions in debt paper that the market must absorb. And it must do it all the while that central banks are not giving buyers in the market the ability to pay. Under the circumstances, all rallies, driven by the springing of hope eternal, must fail, as will this one. Perhaps as soon as today.
For now, I remain the long dong, with stopouts trailing this ride, but I’ll be setting up my short trade alerts as soon as I finish the Gold Trader update over at LIquidity Trader – https://liquiditytrader.com/index.php/category/precious-metals/. Meanwhile, you degenerate trading junkies, enjoy the ride, but be ready to dismount. And put this in yer pipe and smoke it.
Daily bars on the ES, 24 hour S&P fuguetures.
And the usual hourly bars.
For moron the markets, see:
- Gold is Having a Bull Movement, December 1, 2022
- Swing Trade Screen Picks – Read My Lips, No New Longs (A Few More Shorts) November 28, 2022
- Major Inflection Point Here to Determine Whether Bull or Bear November 28, 2022
- Gold and Miners, Pullback Looks OK November 23, 2022
- Fed Policy Will Stay Bearish Until It’s Too Late November 20, 2022
- The Repeal of Rule Number One, Don’t Fight the Fed November 14, 2022
- Bond Market Rally is Technically Valid but Belies the Facts November 12, 2022
- Bad News for the Markets – Not Just Withholding Boomed in October November 3, 2022
- Surge in Withholding Tax Collections in October Indicates Faster Jobs Growth November 2, 2022
- Bear Market Isn’t the Mirror of a Bull October 31, 2022
If you’re serious about the underlying forces of supply and demand that drive the markets, join me!
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