CRM buying DATA…software names that were breaking down last Monday…that ramped on the 2nd Powell, up strong on the news. Fake meat companies soaring on losses…but strong sales. UTX buying RTN. No Mexico tariffs…duh…we told you it would not happen.
Bearish markets used to take time turning…no longer as again, the Fed could not even stand a 7-10% correction before changing their tune. And…the market’s default setting is to just buy it all. It happened in December…and it is happening now.
There is a reason India just lowered rates. There is a reason Australia just lowered rates. There is a reason China just added another $70 billion after adding almost a $trillion to its system. There is a reason Europe just announced they may lower rates even though rates are negative…and also said they could print more money. AND NOW…there is a reason why our Fed cannot even stand a 7-10% correction. The answer: debt and leverage. There is so much debt and leverage in the system that they know what happens if they lose markets. Keep in mind, it is these central banks that enabled all of it and Wall Street that forgot everything about 07-08.
So enjoy. Markets are beyond overbought and frothy in just days off a low.