GOVERNMENT RUN MARKETS WORKING OVERTIME AGAIN

“THE GRM (GOVERNMENT RUN MARKETS) WORKING OVERTIME AGAIN”

By Gary Kaltbaum
garyk.com
@GaryKaltbaum
Fox News Business Contributor
We will be repeating a lot of this in our award-winning weekend report.

We are not a believer in giving out time frames and targets because no one really knows where markets are going to go down the road or in what time frame. That is just guesswork. We had been bearish for quite a while when we called “a good low” on the “poor” unemployment news of October 2. Our simple thought was that 3 reversal days to the upside culminating with a monster reversal on the bad news was the evidence that markets were defended at vital support and sellers were finally wiped out for the time being. As we stated, we never mention targets and time but our best guess at the time was a rally into 2040ish S&P and that would be about it. That thought changed yesterday and today as the GRM is back in force.

Europe not only announces an extention of maniacal money printing and an addition of the same but China announces another massive easing program this morning…which really juiced the futures. Let’s get this straight…China is growing at 7% but they have to ease? At least they told the truth. They said their goal was to lift prices.

Earnings and sales growth sucks…but in GRM, it does not matter much. It’s all about the easy.

For example…here’s just a couple.

MMM sales drop of 5% and lowers guidance…rallies $6.
Microsoft is up 8% this morning on no earnings growth and a 12% sales drop.
We can go on and on about the sales and earnings drops.

Leave no doubt, the only goal of the GRM is higher asset prices. With an unlimited supply of conjured up money, the game continues.

Please remember the recent drop the market had just on the tease our fed may raise a whopping 1/4 point. It will be just a taste of what ultimately happens when markets stop reacting to the GRM. But as of today…

We have 0% rates around the globe. We have negative interest rates in many places. We have had, according to our abacus, $15-$20 trillion of printed money AND THEY ARE STILL EASING!

The Nasdaq 100 will be skewed this morning as 3 stocks have this index almost triple the S&P. Google, Amazon and Microsoft doing the trick! Have a great weekend….and GO METS!