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This past Monday, we called for A LOW…not because of strength but because how weak things were. The DOW dropped 1100 points Thanksgiving week and 2000 points in less than 10 days.

We believe the fed just put in THE LOW. Readers of this column know for years we have thought markets and assets were fed-induced. To this day, Japan and Europe still have negative rates and are printing money. Our rates have been a joke as people try to tell us 2% is tight. 2% is easy yet the fed again blinked to defend markets and to keep the president happy.

So…for now, we think the A LOW is now THE LOW. This does not mean we do not pull back or retest…just that the fed, for the umpteenth time since 09, has put the floor in instead of letting the markets be free. We would love to see some pulling back in here.

There is still not much leadership as all that has happened so far is that the markets got back the Thanksgiving week losses…but if this is going to last, leadership will indeed show up. The question is whether markets get going to the upside. That is another story. There is a ton of resistance and a ton of broken price charts that have to be worked through.

Futures are down but down modestly in comparison to yesterday’s gains.