Market Bulls showed force in the rebound, can they sustain it?
The amazing thing about the financial system is the FIAT printing machines are in full operation printing Trillions! People all over the world will get "free money" and to buy not only food but the latest iPhones. Bottom line with QE and "stimuluses" is it makes everything more expensive, slowly, over time, including stock prices. The moment I turn bearish at this point in time I get nervous fighting the Feds and central bankers. It's like the dealer changing the rules on you if you gamble. You better learn the new rules FAST!
The rules are changing, People pay electronically. The resolve of government and national world bankers (the Fed) is 100% on this and will pull whatever level they want. That's why we gapped up market wide, when does this happen? It's also scary since we have no idea what really happens next.
The clean downtrend descending triangle has been broken by the willingness for the government to do anything. I would never short overnight given the amazing power and resolve, the government has. But, the market bears want to cut through that force like a hot bottom through butter.
Going neutral as a general bias for now until the bulls continue to prove themselves but they might be exhausted and might not be able to push through the resistance at 2570, but if we push up above and stay above, the fight is far from over. Cash is short term the best unless you are a very active participant. Long term, anyone who knows what dilution does, knows that printing money raises all asset classes until the party stops. Raise your hand if you really want the party to stop. A nice pause is good, a stop?
Let's see if the bulls push it through with these solid days. We're at an important crossroad today. If need to close above $2570 the recovery is underway, otherwise, this is going to be a long winter. Maybe...
The rules are changing, People pay electronically. The resolve of government and national world bankers (the Fed) is 100% on this and will pull whatever level they want. That's why we gapped up market wide, when does this happen? It's also scary since we have no idea what really happens next.
The clean downtrend descending triangle has been broken by the willingness for the government to do anything. I would never short overnight given the amazing power and resolve, the government has. But, the market bears want to cut through that force like a hot bottom through butter.
Going neutral as a general bias for now until the bulls continue to prove themselves but they might be exhausted and might not be able to push through the resistance at 2570, but if we push up above and stay above, the fight is far from over. Cash is short term the best unless you are a very active participant. Long term, anyone who knows what dilution does, knows that printing money raises all asset classes until the party stops. Raise your hand if you really want the party to stop. A nice pause is good, a stop?
Let's see if the bulls push it through with these solid days. We're at an important crossroad today. If need to close above $2570 the recovery is underway, otherwise, this is going to be a long winter. Maybe...