This political season is funded beyond our wildest imaginations. More is at stake than ever. There is a war going on, mistrust what you see. 87 was not an election year.
A couple of observations before the weekend starts : 1) ES wasn´t able today to break through Simple Moving Average ( 20 ) for 7 hours. And you can guess where this "breaking" point was : yep, 1175.00-1175.50 2) "Events" like this must be coordinated. Coincidentally volume was extremely low today. Absolutely no sellers. 3) I am still waiting for my $ 500.000 cheque. GL+GT
USD Did Gietner pull a "dick out" at the G-string 20. USD futures saw it. If not QE du, perhaps forency curbs - Tim's got his eye on the ball and stick in hand. There's got to be a way that doesn't look like central planning 2.0. The market doesn't know what to think - as usual. Neither do i.
All three major indices are now sitting at major key areas in the weekly and monthly charts. What's coming ahead is no picnic. I don't expect these areas to act precisely but the fact that we are at these areas and so close to election week is no coincidence. I suspect a great move is coming and the best course of action is probably to wait for it and examine it to see if its got legs, then join the stampede.
Nadeem Walayat writes: Delusional Deflationists Point to Treasury Bond Market to Illustrate Deflation Deflationists point to imminent deflation and a double dip recession by pointing to the treasury bond market yields plunging towards the credit crisis lows whilst at the same time continuing an 18 month mantra of the stocks bear market rally whose end is always imminent with the most recent plethora of commentary concluding that it has ended (again) and the bear market has resumed. However the facts are that it is bonds and not stocks are in a bull market that is coming to the end of its life and entering the final manic stage that tends to see markets go parabolic. I am sure in recent weeks you have heard at length as to why bond investors are smarter and thus why the bond rally will go on and on, to me that sounds a lot like the tek stock investors during 1999, they too saw themselves as very smart just as the bubble popped. Every bubble participant thinks its different for them than every other bubble that's popped before, however it NEVER IS! The bond market investors are in total denial of the fact that the U.S. is firmly on the path towards bankruptcy because the US has given NO SIGN that it intends on bridging the forecast $200 trillion fiscal gap between future revenues and liabilities, a gap that can ONLY be filled by printing huge amounts of money triggering very high INFLATION, which will DESTROY the real value of bonds as in purchasing power terms they will just become confetti paper. Against this stocks that consistently pay high dividends can be expected to retain much of their purchasing power, where my focus is on dividend paying stocks because it is more difficult to engage in corporate fraud Enron style if a company is actually making dividend payments.