20 B of Treasuries and 15 B of MBS will be removed tomorrow. Net $35 B per month out tomorrow. This will be a negative surprise. And Yellen will not be the next FED chair. The FED actually wants the equity market to correct about 20% so folks will sell and buy treasuries. also, they know the market is well overdue for a 20%-25% pullback so folks can reload. If not the 20-25% garden variety type of correction, the crash could be 50% when the BUBBLE explodes or the White House/Capitol down scenario plays out by the terrorists. They wanna wreck our financial system. Be prepared for an equity collapse. Sales and earnings still decelerating across the board.
Sentiment: Strong Sell
it makes sense, but how is that this mkt doesnt know? we know and they dont? thats impossible. its not even a rumour otherwise this week would have been very different than it is. and belive me, i really want this market to go down 20% beginning today, and i only see up ticks every fuckxxxx minute.... anything less than 10b will be receive as a gift and the market will continue going up....
One of these days IBDman will be right.
As for your question of what the market "knows"...be wary. It's entirely possible that they do know...and are setting up while trying to mislead the last sheep.
As for what we "know"...we don't know much, until after the fact. We're all just trying to figure out what's going on behind the curtains.