WILD SWINGS THIS MORNING AND THE MARKET HAS NOT EVEN OPENED.
Futures have moved almost 500 points this morning. At first, up around 200 Dow points…to down 300…to now down about 130, 140, 120, 150 and 190 as we send this to you.. JUST DON’T BLINK! The culprit, POSSIBLE INFLATION. POSSIBLE SLOWDOWN. The inflation number was higher, the retail sales number lower. Again, just don’t blink as we note how wild the swings have been recently.
WE DO NOT and we repeat WE DO NOT ever want to see or get to the point where our imbecilic central bank is behind the curve…where they are forced to raise rates because of, dare we say, INFLATION. Remember, Economics 101 should state massive money printing, massive easing of monetary policy, 0% rates for 8 years, negative rates and all that crap…should cause serious inflation. So far, it has not.
So far, our thought process that last Friday’s massive, high volume reversal to the upside was A low…just not sure it is THE low. We sit back and think whether markets drop like they just did and everything is just fine. Major indices have bounced back into their respective 50 day averages. One wants to see them leap back above. The good news is that in central-bank-induced markets, we have seen “V-shaped” moves back to the upside. Stay tuned. Need a few more cards coming out of the deck.
Lastly, we have been asked several hundred times why we are so pissed off at what we are seeing out of DC on the budget. It is simple. The Democrats are Socialists and the Republicans are now the old Democrats. You don’t need our opinion though…just look at the numbers. Once again, the taxpayer is screwed.