With the Fed intervening at 11AM what do you expect? 100% market manipulation by the Fed.
That would be the Fed bidding ABOVE the asking price! That is what they do but it is going to cost them today, way too many sellers lined up to grab that free cash. Don't forget we have huge treasury auctions this week, the Fed needs to make sure they go well by buying it all.
When you borrow against commodities that no bank actually wants to repossess, you have a real problem. Between China stockpiling and using their materials as collateral and Wall Street speculating in futures with massive leverage without ever taking delivery of those commodities has created artificially high prices. Copper was $.75 for decades, once Wall Street started speculating it shot up to $4. The same is true for oil, when banks were going under oil went from $147 to $33 in 6 months.
The Fed has created a monster and it is about to escape from it's cage and create havoc globally!
If you only survey the 1% and top 500 corporations they will agree with the Fed since they are the ones who benefit from QE. When you can borrow money at 1% to buy you stock back at 4x 2009 levels while the lowly middle class can't get a mortgage or small businesses can't get loans you know something fishy is going on. The only growth is in profits due to price increases, not unit volume growth.
QE is and always was a huge mistake, it has completely distorted markets and risk metrics not to mention destroying the middle class.
They are desperate to push futures up this morning after the carnage in Japan and Europe. Our J's are roughing up overseas markets while their friends at the Fed protect US markets. So how much did they steal in the last 12 hours in those markets? You can see the effect of Yen selling by central banks in US futures and the DAX instantly. When the 3 largest central banks engage in QE you get distortions from carry trades. Don't forget that many other central banks are doing QE as well, Canada and Switzerland to name a few. The only markets that have gone up are countries that have central banks engaged in money printing and interest rate suppression. They are creating bubble through manipulation and it will end as it always does in a crash!
Wall Street feasting on Japanese suckers and cleaning out the BOJ's QE money. Our market is fully protected by the Fed but they allow Wall Street to short sell and feast in other markets.
Who is Wall Street taking the profits from? They don't pay you from their money, it gets shorted out of your IRA and 401k. Money only flows one way, from you to them. When sellers show up they get on the horn with the Fed for "liquidity". They stole your money long ago and deposited that in a Cayman bank account, their personal accounts of course.
They are scrapping it because they promised to end QE long ago when the rate hit 6.5%. Well, here we are but unemployment, the real level of unemployment is WAY above their claim of 6.5%. Millions simply gave up, now they collect welfare and food stamps so they are no longer considered unemployed! Nothing but lies and playing with numbers. There is no inflation either because they exclude everything you buy daily or weekly from their calculations!
As they said a few days ago, the Fed can make things look better but they can't actually make them better. Now you have Staples, Sears and JCP closing stores, there isn't a day that goes by where you don't hear of more layoffs. JPM letting 8000 people go in residential mortgage departments, I guess they knew Freddie and Fannie were getting scrapped and they sure as heck aren't going to fund mortgages out of their pocket.
Now we have one earnings and revenue miss after another not to mention bankruptcies. Ashley Stewart sells "plus size" women's clothing, they are bankrupt! If you can't sell clothes to fat women in this country you know things are bad because 7 out of 10 women are huge! Those giant pair of Levis they used to pin on the wall at retailers are now on the racks by the dozens:-). The bottom of the barrel can't even afford to go to McDonalds anymore so you tell me how successful QE has been? The rich got twice as rich and everyone else got poorer and has no work they can live on. Why work for $7.25 when you can get much more on wlfare and food stamps!
Watch AAPL rise as the market tanks. Then they tank AAPL to bring the indexes to new highs. So......with all the great news we had lately with all time highs in the markets, the Fed should be able to taper $20 billion at this meeting, right?