I guess GS was right.
Of course she will, after all she learned from the other Keynesians idi0ts: Greenspan & Bernanke... However, an economy where small business are ignored, or worst yet actively sabotaged by Fed monetary policy and were most people work for the state or a global corporation is an economy that has lost its knowledge of the key entrepreneurial building blocks and therefore is doomed to fail.
You need to qualify that: It's not all doom & gloom if you're one of the 0.000001%ers...the rest (especially the increasingly disappearing middle-class) will disagree with you presently.
No need to get bent out of shape... This "idiot" reads the NYT, WSJ, Barron’s, and believe it or not even watches CNBC on occasion if I'm bored as well. And you're right, "bad times are not bad for everyone." Just for an increasing number of individuals who once counted themselves among the middleclass, I should know--I once employed a few of them myself.
Higher highs in stocks (well up to recently) and lower highs in confidence - not what the Fed wants.
Fed scheduled to buy bonds in the 02/15/2036 - 05/15/2044 range for a total amount of $0.85 - $1.10 billion
Jeff, earlier this month we mocked China for being desperate enough to push its tumbling housing market (which directly and indirectly accounts for some 80% of Chinese GDP per SocGen estimates) no matter the cost...
However, little did we know at the time that the US, never one to lag in the financial innovation department had once again one-upped China, by bringing back from the dead the company that according to Housing Wire was "once a poster child for pre-crash subprime lending" - Ditech Mortgage Corp. Remember them? Well they’re back…
I couldn’t even begin to guess Poles, too many variables in this market these days (most of which have nothing to do w/ finance or economics) for me to make any sort of reasonable guess.
Ever since QE kicked in this market like any other junky has been fixated on its next fix, so in a sense fundamentals have gone out of the window for the most part.
And not only that, but now we also have to contend w/ the ongoing geopolitical blowback thanks BO & co., as well as other idiotic decisions of this administration like the return of Subprime 2.0 w/ 125% LTV loans that we learned yesterday are coming back. …God help us!
However, and in all honest—my rant above notwithstanding, I’m more focused on the USDJPY than I am on the $SPX at this point. Like I mentioned before a break of the all-supportive USDJPY one-year-trend would be a lot more worrisome for me going forward.
As far as the $SPX goes, I think it drops to about the 1850 range or so and then does one last bounce to complete what I sometimes refer to comically as a "terminating rising triangle" pattern.
Bottom-line, I still feel our Fed-fueled lottery-ticket economy will unravel with a vengeance in the years ahead. And I say this b/c malinvestment - the systemic consequence of the Federal Reserve's policies of near-zero interest rates and abundant credit - doesn't just inflate destruction asset bubbles: it poisons productive assets and the entire economy. And that my friend is never a good thing.
Or as Einhorn recently asked Ben Bernanke during their dinner together, who had no answer… “At what point does the next (say, 35th) cheeseburger no longer adds any further marginal value but actually ends up poisoning you?”
Be careful here, because a break below the S&P's 50-day moving average is key... and we just did. Yet what is just as worrisome is the break of the all-supportive USDJPY one-year-trend to 2-month lows.. But then again, the FED pump algos will probably kick in sometime later this afternoon so forget everything I said above.
You know Ahhhaa63, it's never fun -- pardon the pun, when I'm right. It just saves me a lot headache in the long run.
HFT? That reminds me, what ever happened to that lawsuit filed last month which claimed the CME gave high-frequency traders special access? Thought you might know something. Not that I expect much... Seems like something akin to peeing in the wind if you ask me. However, if this actually got anywhere, it would open the other markets up to the same suits. Never going to happen thou...IMHO.
Might get its chance if markets reserve course and start moving higher from here in the following days.
Either way, I would suggest those still short in the near-term to hedge their trades...
Also bought more of the ITM May & June calls.
GL to all.
PS: Also picked up some more GOOGL
Due to profit-taking.
With Europe closed now...with a record high DAX and a 15 year high for the FTSE-100, it seems the weakness implied by USDJPY & bonds has caught up to US equities. After bagging the 1,900 level, the S&P 500 is now down on the day and while Trannies are still holding green, the Russell 2000 is getting slammed (-0.8%) presently... but then again it's Tuesday!!! So, I guess anything is possible, right?