Check what Goldman, Cramer, and the FED governors are saying.
Obviously, trying the prop up the market before July 4th.
Trying to inflate it so they can sell into.
After the 4th, could be a major correction; especially since earnings reports come out in full force then.
I expect to see ugly numbers from some influential institutions.
Stay tuned for updates.
Goldman Sachs Chief Executive Lloyd Blankfein said Thursday the markets’ big selloff was an overreaction to news the Federal Reserve may slow its bond purchases later this year.
Fed Out in Force as Markets Stabilize
China: The Dragon-King about to take a dump on the world’s head.
In the aftermath of the record cash crunch in the Chinese interbank market, many financial institutions in China and abroad have been hoping that the PBOC would either end its stance of aloof detachment or at least break its vow of silence and if not act then at a minimum promise good times ahead. Alas, despite repeated confusion in various press reports that it has done that, it hasn’t aside from the occasional “behind the scenes” bank bailout. And at today’s Lujiazui Financial Forum, PBOC governor Zhou Xiaochuan kept the status quo saying the central bank will adjust liquidity “at the proper time to ensure market stability.” That time, however, is not now.
Smart Money has been heading for the exits.
The opiate of investors has been central bank liquidity. The degree of stimulus has been unprecedented. But, as BofAML notes, never was so much invested, by so many, on the view that the Fed would stay “behind the curve”.
It seems – based on gold, credit, bonds, and EM – that no longer can be guaranteed (despite the ongoing anti-Taper jawboning by every Fed head and mouth-piece).
It is clear that liquidity withdrawal will not be painless and will sustain higher volatility and BofAML sees two big risks this summer – a market event and/or a macro event.
The day after this report was released, the market hit it’s all time high and has been sliding ever since.
There’s blood in the water and the sharks will come
BlackBerry Plunges On Abysmal Results
Don’t Fight the Bears
Adjusted on: 6/27 Comments: US 30-Year Bond: Don’t fight the bears below 134.22. I’ll favor the bulls at 136.00 – that will bring all the pivotals up-top into play. (all 3 are first-touch fades too).
10-Year Treasury Notes: The yield is still pretty-much the key here – guard against getting caught long below it. Lean long at 127.145. US 5-Year Treasury Note: There really isn’t alot here…we need to see WHO controls 121.135 and the yield (120.11). S&P500 Stock Index:
The bulls need 1616 – until they get that, it is POSSIBLE the highs are in. The pivot lends NO support; if the bears take trade back below 1601, 1582 is in play.