Russell may be inflated, but Fed hasn't acted with anything but continued "stimulus"
After testing waters with "tapering" mortgage bond buying and seeing markets crash the Fed chickened out.
The trade is long for the next 18 months as unemployment ticks up as basements empty of 26 year old teenagers looking for jobs at Walmart with fresh MBA'S the fubdamentals remain stretched but stll augering long.
Looks like shorts may be right but too early to the game. I wouldnt be on the wrong ide of this trade for the next 18 months.
A blowoff of two percent today in the market showed no tolerance for the continued "rumor" "we
are thinking of tightening". Watch for the bottom Thursday morning, and the bounce by Monday. This is really getting silly--tomorrow the unemployment claims will show very little progress towards anything approaching something less than entrenched unemployment and underemployment, and a host of part time jobs masquerading as employment also shows no progress to speak of.
We should be back to Monday highs by close of business Friday, option expiration madness that day notwithstanding.