There are overnight meetings and tomorrow there will be a renewed effort push the stock market higher.Today the effort was enormous but still fell short.
The fundamentals are not there and neither are the technicals. Today gave the impression of a massive human effort to push a stalled locomotive over the crest of a hill. As hard as they tried the locomotive still slipped back. I have been trading stock since the 1960s and can say with complete confidence, genuine markets do not behave this way. Don’t misunderstand. I am not claiming necessarily to know what happens next even in an honest market. What I will say is that there is always an ebb and flow to price activity. When stocks fall back from intra day highs, they don’t stabilize just before going negative 99% of the time. Stocks do not stabilize into consolidation patterns with volume increasing for the entire duration of the pattern. Each day there are key stocks that sky rocket as momentum igniters. The action does not rapidly move from index to index in an attempt to find some group that will move.
What we know for sure is that all of this is not working as well as it has in the passed. When it is time to ignite momentum there is always a wonderful news announcement for a key stock or key sector. Earlier on, every other stock would would follow the lead of an anointed stock’s. That is not happening these days as it is expected to do.
Don’t expect the billionaires club to throw in the towel. Not just money but the entire power structure of the world is dependent upon ever rising stock prices.
We know for sure there will be an new approach in place if not tomorrow, very soon. The old paradigm is not working. As I have already said, when enough damage is done, the market will collapse. The wealth and power structure of the world will be turned upside down. Central economic planning hurts everyone but the last to feel the pain are the ones central economic planning is designed to help. Everyone loses but the very rich who have benefited from quantitative easing and gifts of unearned money.
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