*click to enlarge chart. It is typical to get initial, multiple HEAD FAKES after FED announcement. AND TODAY WAS NO DIFFERENT.
My comments on chart I don't need to repeat here.
I also won't announce the death of the rally either, imagine that? Blue arrow show oversold and last time the bounce after.....one day reversal is a warning not a new trend just yet.
The US $ no surprise caught a bid ....a little one, at miniscule bullish readings there is a shitload of room to upside, don't expect a rally in a $ you think is dead to surprise you....
OIL data today shows NO PREMISE FOR RALLY in what's important to me.....you use energy in an expanding economy.....funny all of a sudden we gots tons of oil and nat gas....prices should fall.
The relationship of oil to natgas is at a decade or higher extreme. One rallies on weak dollar the other crumbles from high supply and slack deamand?
Next day after Fed TEND TO BE OPPOSITE DIRECTION OF wed......WILL THE MKT SURPRISE AGAIN AND RISE THURS?
If it breaks tradition and ends again DOWN......time is RIPE for minimum a correction....to BEGIN righting a rally that has NO BIZ being....
D
3 comments:
The Fed kept rates the same which is no surprise; however they also said they will continue with the unprecedented folly of buying their own debt. They say the economy is improving but will continue to buy their own debt. Hmmmm, sounds like someone is very nervous here.
The stock market has rallied by 50% - so obviously that means absolutely nothing to the Fed and is absolutely no indicator, to them, that the real economy is improving.
The disconnect between share prices and the putrid economy will likely meet each other in the near future.
What I couldn't figure out was that the Chinese market has already cracked and started down and the US market is still cruising. Fundamentally that makes no sense.
But I did figure it out and here is where it does make sense - The US Government along with Wall Street collusion are the world leaders and experts in manipulating markets since the early 80's. The poor Chinese are just too new at this game and don’t have the equivalent manipulation infrastructure or expertise in place to do this just yet.
Good video, check it out.
http://www.youtube.com/watch?v=wxPQTa1JhBQ
The CHinese market may be leading our market, and some lag time invloved. Should the DOW< SPX rally back some I am watching to see if Trannsports accomodate, more lag possible with many anticipating positive GDP to hype and play.
Chinese have been around longer than us, pretty smart people, gave us accupuncture.....throwing GOBS of money at keeping the game going.
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