Wednesday, July 1, before the open. So, it happened again. We got the nice rise in stocks, AND the volume wasn’t bad either. It was greater, but still did not exceed that which accompanied the big down days before it.
The Bearish Island Top is the obstacle. It is huge. There’s the gap up to it. There’s the 4 days of it; those being 6/5, 8, 9 and 10, and then, there’s the gap down from it. After that, there are 4 big sell-off days after it… because that was a Bearish Island Top! Those 4 big sell-off days are, 6/11, 6/19, 6/24 and 6/26. The FED has back-stopped the markets openly, and with TONS of newly created money. We don’t even need to mention 5/14 anymore, as that’s so far back in the rear-view mirror. The latest open manipulations were 6/15, 6/25 and Sunday, 6/28… With promises of more from Jerome Powell. I’ve written of all that in previous posts below.
The Fed is saying, “We WILL have a Bull Market!” And, I’m only saying… Not based on fundamentals. Not based upon actual economic soundness and health. Friends, the Fed is doing everything to prevent a sell-off panic, and… an economic depression. If the numbers about to come out, beginning in about 10 more days, do not announce that we are in a serious recession slump, and slow recovery, that in no way justifies these market numbers… then WHY all this Fed intervention, market manipulation, and money creation??? IF, the Fed knows the upcoming economic and corporate earnings reports will be, shall we say, “encouraging,” WHY all this action on their part?
It makes 0 sense. The Fed is inflating an asset bubble, and creating among the investment and trading communities the two new expressions, minted in recent months… FOMO and TINA. The Fear of Missing Out, and, There Is No Alternative.
Well there is. You can try to trade this. I’m not much of a trader. And, if I did, I’d go with ETF’s of the market… on the NASDAQ and/or the S&P 500. But, I’ve been making ours in the precious metals, where the ‘fundamentals’ being created by the Fed truly support the case for their current prices… and, likely, higher prices to come besides.
I’ve placated the wife. She had said she was wanting the unneeded portfolio dividend income… I said I would derive it by means other than dividends. We knew what the income figure was, before we sold, and I’ve more than accounted for that with our metals gains. She’s satisfied with that…. Phew!
Every trader now knows to place his stops under the Fed-created ‘support,’ which obviously stands at the 200-day moving average line for the 500. The last 3 days of Fed intervention, all in June… the 15th, 25th and 28th, are all at, or just under it. You want to play this… you can try doing the same. I made our June income in metals. Plan to make it for July in the same manner. I’ll update the timer, but until I can get signals indicating low market risk… It is dangerously high right now!