As bad as the internals and technicals looked, the markets have again been juiced by central banks. Most cannot fathom that we are not dealing with central banks of the past in which they would lower rates by a quarter point. You now have central banks at 0% rates so not much to do there….
We break away from our regularly scheduled program on the markets…as we are back to…”they are never going down again!” Actually, we told you we would bounce but as usual, this is more than a bounce as Central Banks around the globe, in a coordinated effort, have juiced markets again. Very simply, they have not…
We told you to expect a rally/bounce from some of the most stretched, extended and oversold conditions we have seen in a long while. But it is again “V” shaped as the central banks do not stop and do not stop talking. Since the lows: We got 3 Fedheads out yapping about not lowering QE…
SOURCE: https://www.zerohedge.com/news/2014-10-20/feds-comfort-zone-1-simple-chart
A few complaints…which will lead me to the market. Evidence that the nuthouse is still full. Venezuela elected to the U.N. security council. Dems continue to lie and complain that there isn’t enough money for the CDC to fight Ebola. “Not enough money” and Washington do not go hand in hand as government spending is…
The Fed has been wise and courageous with its policy. No…we don’t believe that. Lloyd Blankfein does. Yes…the Head of Goldman says the Fed is wise and courageous. MEMO TO LLOYD…courageous is our soldiers who head into harm’s way every day. There is nothing courageous about a few unelected people who press buttons on computers…
Saint Louis Fed President James Bullard says Fed should delay ending QE! With that, the Fed is now targeting the market again. A statement like this is not by chance…it is by choice and it is on purpose. We hate Central Banks…especially our Central Bank that believe they are omnipotent and believe they can engineer…
We are noticing today’s pre-market is being yonked again. The hope by many was that yesterday was a good washout day. A washout day occurs when everyone who had not sold, panic out AFTER the drop…leading to a near-term low. This occurs on massive volume. So…yesterday does fit the definition. So…today’s open gives the market…
