Last week’s indications that gold was going higher failed miserably. A collapsing credit bubble takes no prisoners. When the margin man comes to your door,…
The Fed pretended to fire a bazooka on Sunday with its announcement of $700 billion in market intervention in outright purchases. But it was really a popgun. The futures went limit down again when the market opened in Asia last night and have stayed there.
The SPX has broken out of its original crash channel to the downside. It’s in a new channel with a slope of -46 points per day. Long term signals are already extremely negative, and are on the verge of turning catastrophic, cataclysmic, and apocalyptic.
I’ve run out of adjectives.
With no prior announcement or clue, the Fed bought $37 billion in Treasury coupons from Primary Dealers on Friday. To pay for them it deposited $37 billion into dealer accounts at the Fed.
It was the largest single day POMO (Permanent Open Market Operation) purchase since the days of TARP and QE 1 in 2009.
It came without warning. I was so glued to the intraday live charts on Friday, I wasn’t even aware that the Fed had taken this emergency action until after the close.
We sure as hell saw the result. But this is only the beginning of this story.
As fast as they have come down, they have gone up twice as fast overnight. Here’s what it means for today.
The Fed panicked today. It doesn’t know what to do because, as Jeff Snider pointed out, it has no clue what the disease is.
NO! It’s not the coronavirus, as the Fed claims, and litterally everyone believes. So the Fed’s prescription can’t work.
The Fed announced today that it would attempt to stuff $1.5 trillion in short term loans into Primary Dealer trading accounts over the next 3 weeks. OK, but will there be any takers?”
The calamitous triangle break that was pending yesterday morning, happened. We got the usual result. Badda bing, badda boom.
We got the expected rally, but God, it’s pitiful so far. This thing is on the verge of an explosive triangle pattern break.
Yesterday I led off with the thought that the fucutures had a bead on 2700. The intraday low on the futures was 2695. I’ll try not to break my arm patting myself on the back. But gee, this happens so infrequently, a guy should be allowed to gloat once in a while.
The rally that I half hearted expected seems to be under way. It better stick for a while, or you can bet your bippy that the gates of hell will open and we will all be consumed in the fires of eternal damnation.
And you know that I never exaggerate.
Gold again challenged trend resistance and pulled back. This is a multiple choice test. Here are the answers. Only one of them is correct. If…