US Equities' Overnight Bounce Is Biggest January Surge Since 2005
What goes down, must bounce dramatically higher... and all because PBOC squeezes Yuan short-sellers and unsustainably "stabilizes" outflows with 'temporary' capital controls...
Source: @NanexLLC
This is the strongest post-midnight rally for a January since 2005...
(2 votes)
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What goes down must go much lower -- oil
It's earnings kickoff - or competition for the best fictional reporting 2016Q1.
Beat It: https://www.youtube.com/watch?v=ZcJjMnHoIBI
(not who you think)
/sarc off
3:30 ramp down muthafucka!
Although this almost immediate plunge is refreshing
So the IMF let them into the SDR basket and they are trying to re-close thier capital account? Errr....
The reality is they have to devalue. They might fight it today, but fighting it just slows down their economy further. So China if you want to cut off your nose (the nasty "speculators") to spite your own face (your manufacturing secotr) then good luck, you will need it.
I still believe in financial gravity.
What I don't understand is that when I run out of money, I can't buy more equities and I don't have other families throwing money into my account so it's a certain level and stops. So where is all this money coming from to keep driving the markets higher? Is China buying all are equities? Shifting all their money into our market? How do these markets keep going higher and higher and higher with limited money being supplied particularly by the feds since QE has ended, or has it?
I don't think QE has ended.
I don't think QE can end.
I think Modern Macro Economics requires Fictional Money to survive.
How many times will we do this?
First: The Fed announces a possible rate hike / or finally makes a tiny factional hike
second: entire world market system begins to implode, as the system now can not exist under anthing but USA ZIRP or Negative interest rates.
third: after the market proves it will continue collapse until something is done, then central banks send in the Plunge Protection Team [or whatever name you want to use, it is simple manipulation using printed money]. And free fiat is used to buy whatever it needed to be bought to roar upwards in face ripping actions. The Central Bank does this to maintain the fiction that one should always Buy The Dip, and the Fed will punish any traders who do not Buy The Dip.
fourth: We all comment on ZH about how fsat the market rebound off of the correction drop. Making those long look brilliant, and you never fight the Fed.
fifth: a bull run until the Fed again tries to raise rates of signals a rate hike.
Lets stop playing games, the Fed wants to go to Negative Interest Rates, but still hasn't gotten the balls to do it. But the markets will soon demand Negative Rates in order to stay levitated.