Well that didn’t take long. Yesterday, the good people of our once-great Republic had about half a trillion dollars shoved into their bank accounts. The great hope was that this mountain of “stimmy” would flow directly into equities, pushing the Dow to – – what? – – 90,000 in a few months? Added to which, the good, good people of the Fed pledged interest rates would stay at 0%….……well at least their interest rates, not the actual market’s……….through the end of 2023. Since they can see clearly what’s going to happen for the next three years. Absolutely.
Here’s the ES over the past couple of days. It decided Powell is full of it:
Not to be outdone, the NQ likewise vomited its gains all over the linoleum.
And, of course, gold completely fell to pieces, since That’s What Gold Does.
The reason? Bonds keep plunging. Day after day. Week after week. Month after month. And why wouldn’t they? Would you want to buy the debt instrument of a collapsing republic which will repay the debt in freshly-printed, worthless “money” 30 years down the road? Yeah, that’s what I thought.
Thus, the NQ topping pattern still has a chance.
When I did my post yesterday evening, the markets were poised for yet more lifetime highs. Maybe there was a little truth in what I was writing.