As the Fed’s inflationary operation moves forward…
This week we have a meeting of the economic eggheads.
But now we play a game of ‘will they or won’t they?’ change a few words (or hide the cheese) in the statement as the inflation they’ve created and with the help of the government, put in play, becomes more of an issue. Players are becoming more self-conscious, if not paranoid.
It’s the stuff of a late stage stock market rally that has rotated its way to today’s manic highs after the Continuum hit the first caution zone at 2.5% and pulled back (on cue, provided by the BOND KING).
Per the linked article above, market players now must work their way into the egghead brain of the Fed chief (thankfully this is not Bernanke we’re talking about; he of the really big and really complex egghead brain).
“The biggest wild card is that the chairman sounds too optimistic based on the data that we’ve had so far,” he told CNBC’s “Trading Nation” on Monday. “The outlook is definitely bright.”
And therein is the lie put to this whole policy-manufactured sham. “The outlook is definitely bright” and so of course we need to be cautious because “THE OUTLOOK IS DEFINITELY BRIGHT”. Only in the financial markets, I swear.
But that is the paradox of the system we operate within, created by will (and big brain) of man, and screw the fallout (which will surely come). Well, that’s why I created and use a lot of tools to help avoid the fallout (if I execute correctly, of course).
The easy money has been had from the massive global macro rally. Now players are forced to be more self-conscious, cynical and maybe even paranoid about this entity, this cabal of bankers that regularly meets and decides what version of
MMT (Modern Monetary Theory) TMM (Total Market Manipulation) the markets will operate under.
“There is nothing wrong with your
television set [rational mind]. Do not attempt to adjust the picture [your point of view]. We are controlling transmission [the financial markets]. If we wish to make it louder [more expensive], we will bring up the [funny munny] volume. If we wish to make it softer [cheaper], we will t une it to a whisper [pretend to be hawkish]. We will control the horizontal [rates of interest]. We will control the vertical [price signals]. We can roll the image [roil the markets], make it flutter [you shudder]. We can change the focus to a soft blur [away from that man behind the curtain], or sharpen it to crystal clarity [command your rapt attention to our manipulative goals]. For the next hour [undetermined time period until the macro souffle wheezes, drops and flattens], sit quietly and we will control all that you see and hear. We repeat: There is nothing wrong with your television set [rational mind]. You are about to participate [have been participating] in a great adventure. You are about to experience [have been experiencing for nearly 2 decades now] the awe and mystery which reaches from the inner mind [dark corners of a long-since failed experiment that does not yet know it has failed] to… The Outer Limits.”
Tom McClellan provides a neat correlation between the epic surge in M2 and the stock market. But with the intensity of this surge I would not take ‘manic blow off’ off the table. Can you imagine the epic contrarian signals that could come about if this timer, SPX 4600, Ma & Pa (AAII) epic over-bullish per January, 2018 and the Continuum above at the EMA 100 or EMA 120 limit areas were to arrive simultaneously?
Timing sounds about right. I've actually been thinking May for a top. It might be best to combine Tom's money supply timer with market sentiment and upside technical targeting (e.g. SPX 4600). AAII in particular could send a signal if it surges to the degree it did in Jan. 2018.
— Gary Tanashian (@NFTRHgt) April 27, 2021
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