Seems no one wants to discuss the Short End of the Bond Curve.
After performing a 30 Bip Sequence, the Big Move to Consolidation - the Monthly Chart illustrates how NQ Elevator Up can resolve.
The Fed Fund Futures were dragged into 2022 for 2/2 Indicated @ 72%.
007s on the Short End, believe it's all good, these will backfill and we'll rally 30 more Bips to Our Favor.
Not going to happen, period.
Tech, of course, has shrugged off the impending moves by the Federal Preserve. Moving Vertically to mimic the Denials.
Made Money is not just to entertain you, but to make you Mad Money.
Amazon, Apple, and Starbucks are a "Buy the Dip" - too Big to fail - according to Guyana Punch Distributor Jimmy Jones Crammer.
Few appear to remember how Jimmy ended up on CNBC. After losing $220+ Millon in his Tech Fund, but shining it on... he demonstrated he could indeed sell firecrackers for Valentine's day. A huckster of talent, but a shylock nonetheless.
______________________
Here's the real Issue with BUy Side Carnies, what they won't, don't, and will never tell the Hoi Polloi.
Short Squeezes create ILL-LIQUIDITY.
The Hole in the ground has to fill before the Price can move higher.
"Record Highs, for 5 days we are making new Highs"
One Problem - Breadth, namely the Markets, although I'd venture to guess this Particular MEdia Outlet needs to have its mouth washed out with Lye.
Stocks can be going up, although Short Covering removes Capital from the Markets. It never increases Liquidity, not ever. It persistently reduces it.
Selling stops, the first sign.
Buy to Close is most often performed on an uptick as Stops are run by FORCE.
New HIgh after New HIgh, unfortunately, Equities below their 50SMAs far exceed those above.
As Market Breadth declines - higher weightings are always used. Apple a prime example.
_______________________
Stagflation assisted by $120 - $150 Billion per month, eases the burden of 14.77% REAL INTEREST RATES.
Ease up on Bond Purchases... the Burden takes hold.
Retail is calling a Bluff...
$30 Trillion in Fiscal Debt is dead ahead, unfortunately again... Ramping up the Inflation to drive the DX lower... Yeah, naw, that effort is failing.
Just a note. The last hour of TSLA melt up on Friday eclipsed the entire market cap of formerly bankrupt Hertz ,which if I remember ,traded at a dollar last year. Yes they are in a position for an entire new fleet. I guess they got rescued though l have no knowledge of any of their affairs
HK_L61
⋅
@RT1050, Hertz - Make it up as you go... next we'll see Lyft add 50K Model 3's, then Uber will add more...
Lucid stood the show last week, blowing Tesla's month-long gains away in a single day.
It's a degenerates Paradise, Lucid to $50 / $100 / $200 - They'll be lucky to deliver 1000 cars this year.
Hertz's bailout came on your back and mine... Wall Street, of course, could not resist.
RT1050
⋅
Brilliant, should be required reading on a Sunday,…..paragraph about short covering is especially resonate. Enjoy your day HK
HK_L61
⋅
@RT1050, U2 Amigo, licking my chops presently looking over Indications and timing for a plunge.
IF memory serves you had 11.21 date in mind... it's between here and there, simply watching the FED, Rates, VIX Complex and various other issues.
It is fascinating how they can move this around at will until corrections are permitted.
THis indicates to me the 5/5 will be it for a while, until the next round of Feral Reserve Antics.
great call in this post though