Counter-trend Rally Over?

“Counter-trend Rally Over?”

By Gary Kaltbaum-9/18/2015
@GaryKaltbaum
garyk.com
Fox News Business Contributor
We really didn’t want to write this morning but we are forced into it!

We think there is a good chance that yesterday’s reversal and today’s open ends the bear market counter-trend rally and resumes the bear market. As we have told you, we do not believe markets top out over a few month period and then just turn back up. The more important point is the market’s reaction to the inept Fed.

The market is now starting to act like the boyfriend or girlfriend who broke up with you (the Fed) in college and never wants to hear from you again in spite of you trying. They ignore your calls, your stalking, your notes and messages. (We never stalked)) Markets simply may have fallen out of love with the fed as the game may be up. (Think Boy Who Cried Wolf) You just cannot tell the world everything is fine but not fine enough to raise even a measly 1/4% from the 0% mark. Credibility looks to be shot.

As we have told you for a couple of years, we do not believe the Fed will raise rates until forced to and frankly, we think the next move, unfortunately, is more likely more money printing. Whether or not that lifts markets again is another story.

Look for our gargantuan report on the Fed this weekend as we write how we got to this nonsensical point! Think Bernanke!