Any way you slice it, coming into the NY open this morning, 3978 is the number to watch. It’s the apex of apexes. And the direction it takes from there is likely to define the rest of the day, if not more.
Of course, there’s always the opportunity to honor the memory of the late, great Dick Trickle.
For hopeful bears, I would add that they need to take out 3966 to get anything going on the downside.
Meanwhile, the T-bill market is telling us that there’s excess liquidity this week.
Where’s it coming from? Not the Fed’s Reverse Repo slush fund. It’s growing again. And of course, the Fed is sucking cash out of the system week by week. By process of elimination we can only gather that it’s coming from borrowing. Margin and repo. Leverage on leverage.
Of course, some cash came from the liquidation of stocks earlier this week. That started to be redeployed yesterday as bull hope springs infernal.
It won’t end well, but it can go on until it reaches exhaustion. We’ll depend on the charts to tell us when that is.
For moron the markets, see:
- Gold Hones In On New High Projections December 9, 2022
- Federal Tax Revenues Are Slowing December 6, 2022
- Swing Trade Screen Picks – Picks are Balanced this Week December 5, 2022
- Bears Last Custard Stand December 4, 2022
- Bears Beware, Money Managers Are Finally Spending their RRP Slush Fund November 30,2022
- 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
- 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
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