FED INTEREST RATES( FRED ) - Extension(PART 2) to the US (SPX) Sectors Technical Analysis Series - 18th of August 2019 (9-10 Minute Read)
Everyone complains about the FED rates. That's our only job, it seems . Judging by his tweets, no one has been more eager to express their dissatisfaction, than Pres. Trump (bit' of sarcasm) .
This is Part 2 - of an ...
Fed Funds rate divided by the value of the Dow Jones Industrial Average. Seems to be that the DJI is where they are stashing wealth after each crisis. The process would allow them to tank an index like the Dow, buy it up cheap because everyone and thing sold recently and then they fill all their cracks with stolen money. What do you think?
And we were told that...
Monetary Policy is a funny thing, when times are good we raise rates to prevent the economy from overheating and when times are bad we cut rates to help stimulate the economy. But what if it is interest rates that are leading the economy and not the economy leading interest rates. In that case interest rates would paint a very interesting picture.
In my opinion...
If this trendline is broken, it means higher rates and panic in the credit market. Notice also that the last two times (in 2000 and 2007) that the funds rate challenged this line was the beginning of major market declines.
Just an idea based on higher highs in us equities v lower lows in fed interest rate, tracking from the 1980's. Currently overbought and heading for trend line. Recessions followed the last three touches which were overcome by sending interest rates lower each time. Are we headed for negative interest rates in 2021-2022?
