It's time to get back to buying the dip folks.
So far the wedge looks to be finishing from a technical perspective - but that is not the bigger issue.
CNBC - "The Federal Reserve just pledged asset purchases with no limit to support markets"
"That represents a potentially new chapter in the Fed’s “money printing” as it commits to keep expanding its balance sheet as necessary, rather than a commitment to a set amount.
Others include an unspecified lending program for Main Street businesses and the Term Asset-Backed Loan Facility implemented during the financial crisis. There will be a program worth $300 billion “supporting the flow of credit” to employers consumers and businesses and two facilities set up to provide credit to large employer"
Your belief in apocalyptic pandemics and a shuttered economy will soon be eclipsed in the capability of monetary policy to support markets.
Do look at their asset balance sheet : From March 2nd, 4.21 Trillion to March 16, 4.66 Trillion - a raise of 450 billion in 1/2 month - at a time when sellers are reaching exhaustion.
And their not stopping. So if they are spending an aggregate $1 TRILLION / MONTH in 12 months they will OWN 50% of the S&P.
Stew on that..
There is a very predictable pattern to market support operations.
A. A limited market support operation is attempted with fixed dollars. DONE.
B. If the market sells through that the limits are removed and unlimited Ctrl-P is activated YOU ARE HERE.
C. The trend is FORCED back up.. Shorts are forced to cover.
D. Market purchase operations after a boost and a shot of positive headlines purchase operations are reduced significantly. The market is watched closely for momentum buying.
E. The market is too weak to stand on it's own and begins to drop again.
F. A second double bottom begins to form the giant W that is being watched for..
G. Market support operations are then hammered in pounding shorts to oblivion.
H. Market is forced up.
So far the wedge looks to be finishing from a technical perspective - but that is not the bigger issue.
CNBC - "The Federal Reserve just pledged asset purchases with no limit to support markets"
"That represents a potentially new chapter in the Fed’s “money printing” as it commits to keep expanding its balance sheet as necessary, rather than a commitment to a set amount.
Others include an unspecified lending program for Main Street businesses and the Term Asset-Backed Loan Facility implemented during the financial crisis. There will be a program worth $300 billion “supporting the flow of credit” to employers consumers and businesses and two facilities set up to provide credit to large employer"
Your belief in apocalyptic pandemics and a shuttered economy will soon be eclipsed in the capability of monetary policy to support markets.
Do look at their asset balance sheet : From March 2nd, 4.21 Trillion to March 16, 4.66 Trillion - a raise of 450 billion in 1/2 month - at a time when sellers are reaching exhaustion.
And their not stopping. So if they are spending an aggregate $1 TRILLION / MONTH in 12 months they will OWN 50% of the S&P.
Stew on that..
There is a very predictable pattern to market support operations.
A. A limited market support operation is attempted with fixed dollars. DONE.
B. If the market sells through that the limits are removed and unlimited Ctrl-P is activated YOU ARE HERE.
C. The trend is FORCED back up.. Shorts are forced to cover.
D. Market purchase operations after a boost and a shot of positive headlines purchase operations are reduced significantly. The market is watched closely for momentum buying.
E. The market is too weak to stand on it's own and begins to drop again.
F. A second double bottom begins to form the giant W that is being watched for..
G. Market support operations are then hammered in pounding shorts to oblivion.
H. Market is forced up.