I wonder…has Michael Moore ever put his life on the line for this country?
“The sea was angry that day my friends – like an old man trying to send back soup in a deli.”
Thus the markets.
We have told you for years that at the end of the road of central bank maniacal money printing and constant interference would be distorted price and yield all over the place…which eventually would have to be unwound because very simply, markets in the long run, want to be unfettered…not rigged and controlled by a few ex-tenured professors that press buttons and print trillions. Maybe…maybe not but we are seeing outlier moves in currencies, commodities and yields. …a bib hmmmm!
Today, finally, someone fought back as the Swiss National Bank shot the middle finger up at the ECB and said have a nice life. As you now, the ECB is now going to follow Mr. Bubble Bernanke into the abyss of printing…damn the repercussions. The euro is being murdered and looks headed towards parity with the dollar.
We gave you out support levels yesterday and looks like there is a real chance they get taken out. We were hoping it would not happen just yet. The nasdaq and nasdaq 100 are already there. Any leadership and any breakouts are starting to fail…and that’s not good news. On top of that, strength can be found in food, utilities, reits, gold and some other defensive areas. Yippee.
As we told you, financials continue to be klonked…and that’s also bad news. We told you coming into this week the group was in trouble.
As far as oils, we thought there was a chance of a needed bounce and with the big bounce this morning, it had a chance but when the euro cracked again, party!
We now suspect the next fed move will not be a raising of rates but believe it or not, watch for the rumblings of QE4 as they have put themselves in on big giant box with no real way out.
We suspect the next few days will be muy importante as the two-way trade has been held back by central banks. Be alert!
Knicks are now 5-36 as they could not even win on the other side of the pond.