In only 11 trading days the Dow has catapulted over 4000 points, driven by a handful of stocks over performing and the Fed "chatter" of concern that the economy is getting in trouble, this coupled with shorts covering has lit a fuse in the bears den.
Our midweek idea was sure that the Dow would stop rising around the 61.8% retrace, another 3% added on Friday is heading us fast towards the 78.6% which would be the absolute max.
Nothing has changed in our long term perspective, this is a bear rally to sell...the difficulty is maintaining a manageable position to ride out such violent rallies and this one is extreme.
These market are 100% all about rates, the Fed cannot ever control inflation with such paltry rate rises, they have trapped themselves, unable to raise rates above inflation to quell this monster, pleasing Wall Street with rumours of a pivot...it will not happen soon.
This rally is built on hope that the Fed is about to signal a u-turn or indication of a change. They will perhaps hint at some slowing of rates but will not carry this through for some time yet.
They know how dangerous this inflation can gather momentum and infect further to exacerbate the price rises.
Remember that the Fed stated this inflation was transitory then Powell states it could be permanent???...either he is an imbicile or it's a deliberate tactic to sink the economy.
33,000 is beckoning again, markets are so overbought and may be hanging on until the US election day....such bullish readings though are at extremes where we have seen tops and major turns.
We remain short and patient....these rallies serve to test your resolve and flip you out.
Bear market rallies are punishing and hurt, a lot of our good work and profits have been taken out. We all know that it's game over for these economies no matter what goosing is attempted.
Expect some flipping around prior to the Fed on Wednesday, then disappointment as the realisation that they have been had.
Appreciate a thumbs up...Good Trading & God Bless!
Our midweek idea was sure that the Dow would stop rising around the 61.8% retrace, another 3% added on Friday is heading us fast towards the 78.6% which would be the absolute max.
Nothing has changed in our long term perspective, this is a bear rally to sell...the difficulty is maintaining a manageable position to ride out such violent rallies and this one is extreme.
These market are 100% all about rates, the Fed cannot ever control inflation with such paltry rate rises, they have trapped themselves, unable to raise rates above inflation to quell this monster, pleasing Wall Street with rumours of a pivot...it will not happen soon.
This rally is built on hope that the Fed is about to signal a u-turn or indication of a change. They will perhaps hint at some slowing of rates but will not carry this through for some time yet.
They know how dangerous this inflation can gather momentum and infect further to exacerbate the price rises.
Remember that the Fed stated this inflation was transitory then Powell states it could be permanent???...either he is an imbicile or it's a deliberate tactic to sink the economy.
33,000 is beckoning again, markets are so overbought and may be hanging on until the US election day....such bullish readings though are at extremes where we have seen tops and major turns.
We remain short and patient....these rallies serve to test your resolve and flip you out.
Bear market rallies are punishing and hurt, a lot of our good work and profits have been taken out. We all know that it's game over for these economies no matter what goosing is attempted.
Expect some flipping around prior to the Fed on Wednesday, then disappointment as the realisation that they have been had.
Appreciate a thumbs up...Good Trading & God Bless!