As of 4:45 AM ET, the ES fucutures are pulling back from a high of about 3852, heading for multiple support lines around 3839+40. I imagine we’ll get a bounce from there. If it doesn’t, or if it’s weak, the next target would be around 3824-25.
Monetary policy can be implemented through outright purchases or sales of securities, which permanently changes the size of the Federal Reserve’s System Open Market Account (SOMA) portfolio.
Today’s QE
Near term cycle projections have risen as the relentless mania just trends right along. We may as well take advantage, right? I’ve added a couple of swing trade chart picks that look well positioned to do just that.
What about all those sell signals? Failed again. Short sellers are setting themselves up as targets in a carnival shooting gallery. That’s typical of an entrenched mania.
When and where will it end? I’ve posted near term and longer term projections based on current trends and cycles.
Stock market analysis requires many disciplines. Unlike, physics, for example, it’s not rocket science. Hell, it’s not even science. But while physicists and astrophysicists understand more and more about how the universe works, there is much more that they don’t understand. For every theory that they confirm, more questions arise.
They say that approximately 80% of the mass of the universe is “dark matter.” They don’t know what it is. And there’s “dark energy,” that they don’t understand either. They see their effect, but they can’t see the cause, and don’t know what either of them is. So they observe and measure the effects, and make predictions and develop theories based on that.
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For years now, I’ve listened as Washington politicians and central bankers admit to the obvious – that the trajectory of our federal debt is unsustainable – while invariably arguing it was not the time to be concerned or address it. With Treasuries blowing right through the 100% of GDP milepost – and likely poised to reach 125% within the next year or two – there’s no time like the present to recognize our nation is in serious fiscal trouble.
The Fed has a binary choice: preserve America’s global hegemony or further enrich the billionaires. You can’t have both. <
The widely accepted Wall Street conventional wisdom is that the market discounts the future.
Please disabuse yourself of that stupidity.
Friday’s QE
Record market prices again on Inauguration day as equities continue on the Stretched path. In a world that is uniformly bullish oriented in the firm belief ( and so far correct belief) […]