- The market is closed
- Biotechs are crashing
- Major indices are weak and remain below important moving averages
- Economic data is not thrilling
- Deflation remains more of a threat than inflation
- Fed did a 180 and continues to lose credibility
We really do not like talking about the trees but thought we needed to yesterday. At about 2 pm, we wrote this:
“We do not usually write to you midday but had a few thoughts.
Just a reminder that we are now entering the end of month and more importantly, end of quarter window dressing period. Of course, this is all illegal so it does not happen. We are just letting you know that major indices have been in the midst of penetrating that big ugly day of August 24th. With markets straight down since Fed day, with markets oversold and with markets needing to defend the lows, we suspect some of the ugly could get relieved for a time. We are starting to see some of that on an intraday basis today. Of course, it is early and anything can happen into the close. We just think we could be overdue to bounce. It does not change the bigger picture.”
And of course, another massive gap to the upside today. We had no clue we would get another big gap again but just had an inkling sellers were taking a powder. Of course, markets piss off everyone with these gaps. Welcome to our GRM. (Government run markets)
We will have our usual award winning, in-depth weekly report for you over the weekend. Let’s hope we are getting some real lows in here. Just realize hope does not work with markets. We are open to anything as we know the only goal of the GRM is for markets to go up.