Maybe corrections and pullbacks really are illegal. There is literally no rational reason for us to be back at highs, but with the massive liquidity injections from the PBOC the money has to go somewhere. And it doesn't look like it's going into the Chinese markets. It's the same playbook that got us here in the first place. The overnight futures traders gap the market higher and we open, people add a little more, and we just sit consolidating for the entire day and wait for the futures traders to take us even higher the next day. But getting gaps higher of over .2-.3% was rare without any trade deal news or things of the sort.
Now over the past few months it seemed like our federal reserve, Mr. Jpow himself, was stimulating this behavior. But the past two nights i think it is the Chinese investors, possibly even the central government, that is pumping the markets. They're most likely trying to brute force calm into the markets. They're not stupid either, whoever "they" are. They gapped us over the breakdown candle from Friday yesterday, and gapped us back into the uptrend line today. It's manipulation, willful or ignorant. You can tell by the cash market activity people are still concerned. "climbing the wall of worry" so to speak.
If you were wondering how the Chinese were able to put up that $200+ billion (1 Trillion Yuan) without cratering their currency all you have to look at are the gold and 10 yr t-note. Gold retraced something like $47 in two days. Now i have no evidence of this but most the selling pressure came in the overnight sessions.
If we do move higher there will be an acute bearish RSI divergence on the daily, and also interestingly enough QQQ is having a pretty rough day. It's rare to see the DJI higher than the Nasdaq. But with all the funny money sloshing around everywhere it's rare for those to play out now adays.
It's either the Chinese run out of money, and selling picks back up, or they successfully did save the market and it's back to our regularly scheduled programming of stonks only go up and pullbacks, corrections are back to being illegal.
Don't fight the (Chinese) fed.
Now over the past few months it seemed like our federal reserve, Mr. Jpow himself, was stimulating this behavior. But the past two nights i think it is the Chinese investors, possibly even the central government, that is pumping the markets. They're most likely trying to brute force calm into the markets. They're not stupid either, whoever "they" are. They gapped us over the breakdown candle from Friday yesterday, and gapped us back into the uptrend line today. It's manipulation, willful or ignorant. You can tell by the cash market activity people are still concerned. "climbing the wall of worry" so to speak.
If you were wondering how the Chinese were able to put up that $200+ billion (1 Trillion Yuan) without cratering their currency all you have to look at are the gold and 10 yr t-note. Gold retraced something like $47 in two days. Now i have no evidence of this but most the selling pressure came in the overnight sessions.
If we do move higher there will be an acute bearish RSI divergence on the daily, and also interestingly enough QQQ is having a pretty rough day. It's rare to see the DJI higher than the Nasdaq. But with all the funny money sloshing around everywhere it's rare for those to play out now adays.
It's either the Chinese run out of money, and selling picks back up, or they successfully did save the market and it's back to our regularly scheduled programming of stonks only go up and pullbacks, corrections are back to being illegal.
Don't fight the (Chinese) fed.
