It was another gap up overnight (shocking), and like most of you, I'm starting to wonder if markets will ever function normally again. Yesterday, we saw freakish price action in the afternoon session, as markets flat-lined from about 1PM onward. It's been a long time since I saw candlesticks look like a line chart in the open cash market. But, here we are again, my friends, with another gap up overnight, on zero market participation, zero price discovery, and zero logic.
The reality is, Biden's pick for Treasury Secretary, Janet Yellen, in her speech yesterday, mentioned the need to take advantage of low interest rates, and not focus on the national debt at this time. The example to households is clear: don't use the free money we created out of thin air to pay off debt, go spend it because interest rates are low, and you don't have to worry about the debt, or even jobs, maybe ever again. Needless to say, I disagree, and I think this is shaping up to be the biggest debt trap of all time.
Bank stocks continue to rake in obscene profits as earnings roll in, while Main Street suffers from perpetual lockdowns, and an ever-evolving economic catastrophy. Governments all over the globe are looking to World Bank, IMF, and other large central banks for help, and are being handed a list of orders to abide by, if they want to be awarded the necessary relief funds. In other words, and let me form this as a question, why are banks influencing countries all over the world to enforce lockdowns? And how is it, that while we all suffer, the banks, along with a handful of "lucky" tech giants, reap all the rewards? *Bangs head on wall*
SPY is back near all-time high's, and we're poised to open above the upper band of the white channel. Bears never got a chance to defend some of the key levels that were captured last week, as the never ending overnight gaps continue sneaking up to distort price discovery. The Vix contract rolled over so we'll potentially see some selling of risk protection, as investors digest the inauguration, and the most likely scenario, which is that everything goes according to plan.
People don't like to think about bad things happening, so they often underestimate the likelyhood of them occuring. However, when we're all being treated like animals in a cage, there isn't much we can actually do to change the course of the future. I hope in the near future, our trust, confidence, and belief that logic will prevail in the end, will help maintain our sanity, and give us the strength to continue to fight back against the pain and suffering we're observing, each and every day. I wish Biden and his Administration luck, and I hope for all our sakes, he knows what he's doing.
Key SPY levels to watch today are the all-time high, as I suspect bulls will be testing this level early on in the session in irrationally exuberant fashion, and then the upper band of the white channel (379.50), once again if we see a rejection. We're also watching the 21 day EMA at 374.65.
Thanks for your time today guys, don't forget to head over to the Hedge of the World webste for our live daily play-by-play of markets. Cheers, Michael.
The reality is, Biden's pick for Treasury Secretary, Janet Yellen, in her speech yesterday, mentioned the need to take advantage of low interest rates, and not focus on the national debt at this time. The example to households is clear: don't use the free money we created out of thin air to pay off debt, go spend it because interest rates are low, and you don't have to worry about the debt, or even jobs, maybe ever again. Needless to say, I disagree, and I think this is shaping up to be the biggest debt trap of all time.
Bank stocks continue to rake in obscene profits as earnings roll in, while Main Street suffers from perpetual lockdowns, and an ever-evolving economic catastrophy. Governments all over the globe are looking to World Bank, IMF, and other large central banks for help, and are being handed a list of orders to abide by, if they want to be awarded the necessary relief funds. In other words, and let me form this as a question, why are banks influencing countries all over the world to enforce lockdowns? And how is it, that while we all suffer, the banks, along with a handful of "lucky" tech giants, reap all the rewards? *Bangs head on wall*
SPY is back near all-time high's, and we're poised to open above the upper band of the white channel. Bears never got a chance to defend some of the key levels that were captured last week, as the never ending overnight gaps continue sneaking up to distort price discovery. The Vix contract rolled over so we'll potentially see some selling of risk protection, as investors digest the inauguration, and the most likely scenario, which is that everything goes according to plan.
People don't like to think about bad things happening, so they often underestimate the likelyhood of them occuring. However, when we're all being treated like animals in a cage, there isn't much we can actually do to change the course of the future. I hope in the near future, our trust, confidence, and belief that logic will prevail in the end, will help maintain our sanity, and give us the strength to continue to fight back against the pain and suffering we're observing, each and every day. I wish Biden and his Administration luck, and I hope for all our sakes, he knows what he's doing.
Key SPY levels to watch today are the all-time high, as I suspect bulls will be testing this level early on in the session in irrationally exuberant fashion, and then the upper band of the white channel (379.50), once again if we see a rejection. We're also watching the 21 day EMA at 374.65.
Thanks for your time today guys, don't forget to head over to the Hedge of the World webste for our live daily play-by-play of markets. Cheers, Michael.
