- Expectations are now growing for the Fed to unveil a program of U.S. Treasury bond purchases worth a few hundred billion dollars over several months, an approach in contrast to the central bank's purchases of nearly $2 trillion worth of bonds during the financial crisis.
The WSJ is infamous for being the place the Fed leaks.... before this new guy Hilsenrath, it was Greg Ip who they used - now that Ip has left the paper they have a new 'chosen one' to let the market know what they will do. Because as you know, the only thing worse than crushing the backs of the middle class is making the 'market upset'.
Speaking of, as I assessed this week Sunday night this is how pathetic things have become. I thought Wednesday would be the only day the market could sell off. Why?
Monday: Morning melt up - whatever happens after the premarket surge, even if it was a selloff during normal hours post 10 AM...the premarket surge always creates a nice buffer.
Wednesday: Could be a selloff
Friday: Bears are afraid of the following Monday morning melt up, so step aside
For anyone who believes the market is some magical place, where buyers and sellers come together in a 'free market' to determine prices, this all just makes you sick to your stomach.
Next week is 'tricky' because we have the elections and Fed meeting... everyone knows what is going to happen and in a normal market without a Fed "POMOing" and "QEing" us to prosperity, you would except a sell the news reaction. Especially since we've had 2 months of rallying in anticipation of such news events. That's how it used to work when the market was somewhat free and normal. But this market is not close to normal so who knows anymore.
The market continues its 2 month dance along the 13 day moving average