I AM SPEECHLESS: (a little Tuesday morning rant ....)
I am supposed to be a "simple little chartist" but what is going on in the world is just doing my head in.
I quote Dow Jones below because its a well understood index and the point moves make sense to me and most others I suspect?
Yesterday I was not surprised to see the Dow was down again in the premarket; on the way to an ABC correction I had thought and my HnS top playing out. It was nearly 1,000 points down in pre-market at the low (about 4pm AEST) and it had recovered about 1/2 that drop by the time the US opened at 11;30pm aest.
mmmm what was causing this move??????
Now for fun if I'm up at the US open often just watch a live chart on say a 5min time frame and enjoy watching bulls and bears go at it. (yes, a little weird I know but when you love the markets and the associated charts well thats what you do for kicks! LOL) Last night when I went to bed I decided to watch the Dow open (11,30pm aest). Well there was a battle in that first 1/2 hour with 100 pip swings all over the place (I remember when 100 pips was a big move in the Dow!) .... I watched as the buying overwhelmed the selling ...... WHY?
I woke up somewhere in the early hours and here were the headlines.
The Federal Reserve said Monday it will start buying individual corporate bonds.Previously, the central bank had been buying only ETFs and had said that it would be buying individual issuance on the primary market.Here is the Fed announcement:
https://www.federalreserve.gov/newsevents/pressreleases/monetary20200615a.htmAhh so that was the earlier buying .... the SM loading up for the announcement!
The Dow rallied 1,300 points or >> 5% from its lows ..... JUST MIND BLOWING WHATS GOING ON HERE.
Enough typing here is a copy and paste of some random tweets from my feed.
-Stock market corrects -9% in a week, so the Fed announces they are now buying up Corporate bonds....you may as well throw all traditional valuation and technical techniques out the window at this point. The Free market is dead. Long live zombies.
-FED are buying individual corporate bonds. Free market is dead.
-There is no red line this Fed will not cross.etc etc
FWIW I think the announcement linked to Fed MAJOR announcement just last Friday re keeping interest rates low into the future .... instead of calming markets it sent mixed message of HOW BAD CONDITIONS MUST BE?
From Tw again:
-Seems to me that the Fed is sending mixed messages. They call for a recovery in the 2nd half of 2020, but keeping rates at emergency levels until 2023 and now buying individual corporate bonds..TRUMPS RESPONSE IN THESE TIMES?
-Trump’s mega MAGA rally in Tulsa, Oklahoma is the hottest ticket ever!Advertisement - story continues belowBy Friday afternoon, more than 300,000 people signed up for tickets to attend Trump’s first rally after the COVID-19 lockdowns.SOOO the US has basically beaten CV19 according to Trump????
mmm the facts seem to say long way from sorted; from this site:
https://www.worldometers.info/coronavirus/country/us/
&
Hardly seems sorted?
From Tw again:
The U.S. death toll from the coronavirus illness COVID-19 climbed above 115,000 on Monday, and the stock market tanked amid growing concerns about the uptick in cases in several states after their first efforts to reopen after lockdowns.While early hot spots, including New York, New Jersey and Connecticut, are showing clear progress in containing the spread of the illness, other states, including Alabama, Arizona, California, Florida, Louisiana, North Carolina, Nevada, Oklahoma, Oregon, South Carolina, Tennessee, Texas and Utah are all seeing increases in infections.In total, 23 states are showing a rise in cases, according to a New York Times tracker, while 10 are showing rates pretty much the same and the rest are recording a decrease in new infections.- Conservative America is really just gonna let 250,000 people die of coronavirus, with hundreds of thousands more suffering life-altering health issues, and call it the price of doing business.Ok so haven't even got to the BLM movement, police response & the unbelievable White House versus State/Governor conflicts going on .....
I think i should quite my Tw account .... stick to drawing squiggles on a chart .... I've had enough .... going to play golf.
Even my moving gold shares aren't cheering me up .... probably "dirty" Fed Money that kicked gold up overnight.
;-0
(20min delay)