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Dow Surges 400 Points After Fed's Bullard Prevents Plunge With QE4 Bluff
It never gets old... if this sell-off was triggered by a realization that the consumer is truly depressed (retail sales) and the Fed is almost done, then the face-ripping rally (notably on weak volume) of the last 24+ hours is the ugly truth that the 'market' is always and everyday a function of central-bank bullshit. Since Bullard's "QE4" comment (strengthened by random headlines on Yellen's "economic confidence" and ECB Coeure's "QE any minute" comment), the Dow is up 400 points, S&P up 70, and Trannies up 3.5%. Small Caps are now up 3.5% on the week and 30Y Treasury yields only -2.5bps on the week.
Since Bullard's Bluff...
Bear in mind this is almost a 50% retrace of the drop (dead cat?)
and on the week Small Caps are squeezing higher...
Double-whammy...
* * *
Of course what everyone forgets in this exuberant bounce is that the higher the Dow/S&P rise, the lower the probability of QE4... game-theory that!!
Simply put - meet the Data-Dependent-Dow (tm)
Charts: Bloomberg
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All europe red AH
http://trololololololololololo.com/
Of course it's up. You can't sell to yourself, so unless you create buyers you just run the prices against yourself. Unless this pierces previous highs, it's just a distribution pattern, doubly so because of the parabolic nature of the beastie.
IBEX off nearly 1% AH very unusual can't see the news
European futures selling off here VERY unuusal, can't see any news IBEX off nearly 1%
anyone need a reminder what happened last time these wild swings were going on? it's a sign of something to come relatively soon.
Bluff ... No. We will have more QE, but his timing is a bit off ... the panic collapse must come first
I'll reserve judgement until 2pm then again at 3:30pm
Russell red IBEX off 1% very unusual, market may be spooked by this Ebola warning buy some Dow and S&P daily puts ...
A smoke grenade to cover their escape.
<<< Closes above 1905
<<<Closes below 1905
And that puts the US$ deep into suckers rally territory.
LOL
it's Friday...almost forgot
The simple fact that our US Govt gives an entity (The Fed) the power to "pull our strings" and manipulate the market is simply embarassing. The Fed should be abolished because their tactics just lead to bubble economy/bust/bubble economy/bust, and on and on.
I vote for responsible fiscal policies to replace Janet Bullard and Company once and for all, and then and only then might we build a truly sustainable economic foundation that's here to stay.
Glad I did not sit on my hands. Selling half those BTFD investments today.
Little on the economic front is differet from yesterday but the markets were up, up, and away from the start. To say the market is rigged is an understatement. After over 30 years of trading commodities I will flat out state without any reservations that lies and manipulation run rampant. If you think anyone is looking out for the small independent trader you are wrong.
An unholy alliance of the Federal Reserve, the government, and the too big to fail has left the rest of us in a precarious position. For the big boys, its insider information and computer trading, this includes computing patterns that exploit where stops are placed, this improves their ability to wash the weak out of their positions. The bottom-line is that the higher the market goes the more vulnerable it becomes to a major collapse and sudden downward move. More on this subject in the article below.
http://brucewilds.blogspot.com/2013/07/markets-more-lies-and-munipulatio...