Saturday, November 29, 2014
Historic October-November 2014 Stock Market Rally Created by Global Central Banker Collusion
The historic and epic 31-day stock market rally is created by the collusion of global central bankers. Grab a cup of coffee or tea or other beverage of choice and read the following to understand how the central bankers collude to goose the stock market and save a potential crash scenario in mid-October. The central bankers threw the kitchen sink at the stock market to save the day. The remaining central banker fuel is the official announcement of a full-blown ECB QE (sovereign bond-buying) program and perhaps QE4, even QE5 and QE6, by the Fed as time moves along. The end game occurs when all confidence is lost in the modern-day central bank 'money changers'.
On Thursday, 10/16/14, S&P futures are down 30 points before the opening bell. At 10:25 AM EST, one hour into trading, the SPX is printing a LOD at 1835. The Federal Reserve realizes the stock market is in a potential crash mode and must intervene to prevent an all-out collapse. The FOMC sends St Louis Fed’s Jim Bullard to the media to stop the stock market selloff. Fed’s Bullard surprisingly says the Fed should consider delaying the end of QE. QE 4 may actually be the next path forward. Traders are happy at the prospect of more Fed easy money and the wealthy can start raping the upside in the stock market again. All hail the Fed! The central bankers are the market. Bullard’s comments create a firm stock market bottom. The market selloff immediately ends and a ‘V’ recovery rally begins that launches equities higher like a rocket. A parabolic move occurs into early November where the stock market recovers all the losses during the September-October selloff and prints new all-time highs in early November. Fed’s Lockhart cites negative data providing more dovish reasons for the Fed to offer easy money and keep rates lower longer and send stocks higher.
On Friday, 10/17/14, The PBOC announces plans to inject 200 billion yuan ($33 billion US) into the economy which creates a more optimistic tone. BOE chief economist Andy Haldane takes a page from Fed governor James Bullard’s playbook yesterday and says the central bank may consider more intervention to assure a continued recovery. The ECB plans to start purchasing asset-backed securities sooner than originally scheduled. The world’s central bankers are colluding to successfully create a bottom in stocks and stop the global cascading selloff. Fed’s Bullard began the party yesterday hinting at QE 4. China’s PBOC chimes in overnight planning more stimulus. The BOE echoes the same easy money talk and now the ECB plans to pump the stock market right away with its Keynesian policies. Make no mistake; the central bankers are the market. European indexes jump higher. The world’s central bankers (Fed, PBOC, BOE and ECB) are out in force promising to pump the stock market higher with easy money.
On Monday, 10/20/14, the dollar/yen moves higher to 107.22 so the weaker yen creates bull fuel. Banzai! The NIKK explodes +2.6% higher to 14917. Japan PM Abe may delay the decision on a second consumption tax and pension funds plan to buy more Japanese stocks creating a happy mood. US futures are in a joyous mood. China’s PBOC plans to inject $33 billion of liquidity into the banks which creates market positivity. The BOJ and PBOC news sends stocks higher.
On Tuesday, 10/21/14, European indexes move higher as rumors and reports of ECB stimulus circulate on trading floors. DAX +1.1%. MIB +1.5%. Global central banker collusion continues. The trading day begins with equities exploding higher. Bullish traders are fueled by the weaker yen overnight and the ECB providing more stimulus. Dip-buyers are rushing in to buy the long side and traders chase stocks at any price for fear of missing the recovery rally. The SPX blows up through the 200-day MA at 1906 and 10-month MA at 1908 like they are not there. The SPX prints above 1922 recovering 100 handles off the 1820 low only four days ago. Traders abandon puts and other downside protection fully convinced the markets are in strong rally mode again and perhaps on the way to SPX 2K again. The bullish enthusiasm turns euphoric. At lunch time, equities are printing at the highs. The SPX is in a straight non-stop march higher all morning now above 1930. The Dow is melting up with a huge 135-point gain. The computer screens are green. The stock market is in complete melt-up with major indexes and sectors moving +2% higher. The day ends with equities printing the best day of the year. The news that the ECB will begin purchasing corporate debt creates the strong rally in Europe and the US.
On Wednesday, 10/22/14, Asia generally follows the US stock rally that follows the European rally created by news that the ECB will begin buying corporate bonds (although the ECB will not confirm the news).
On Thursday, 10/23/14, long traders are in a party mood drinking the Fed booze and raping the market upside. Caligula would be proud. Short-sellers throw in the towel today creating a huge short-covering rally. The TICK prints the initial +1200 at the open and three more +1000 numbers today in sync with the intraday stock market tops verifying the bullish euphoria in play. The adage “don’t fight the Fed” is back in play and the central banker market manipulation is far too powerful to fight. The weaker yen (dollar/yen running above 108) sends equities strongly higher. Long players are tripping over each other buying stocks indiscriminately convinced that the train has left the station. Many money managers are playing the bullish third year presidential cycle where October (now) into the following November (2015) of the president’s third year is typically a multi-month bullish period. In addition, about 25% of all buybacks announced during any given year occur in the last couple months of the year to pump stocks higher. Also, years ending in ‘5’ are always up years (2015) further fueling a bull frenzy.
On Monday, 10/27/14, the PBOC says China’s growth is expected to slow to 7.2% (the central bank expected 7.5% at the beginning of the year). The comment hints that more PBOC stimulus will be provided to prop-up the economy and stock market. Bad news is good news since it means more easy money from the Fed, BOJ, ECB, BOE and PBOC to pump the stock markets higher.
On Tueday, 10/28/14, the dollar/yen moves above 108. Banzai! The BOJ is weakening the yen and sending stocks higher over the last couple hours (the weak yen creates a flood of buying into Japanese and US stocks). The central bankers are the market. Traders also anticipate additional stimulus from the ECB providing a lift to stocks. In the final minute, the Dow moves above 17000. Markets jump higher pricing in dovish comments from the Fed tomorrow. The session ends with the SPX up 23 points, +1.2%, to the important 1985 resistance level. Price takes out the 50-day MA at 1967. The Dow prints above the psychological 17K level gaining 187 points, +1.1%, to 17006.
On Wednesday, 10/29/14, Chinese data is weak but traders send stocks higher anticipating more easy money from the PBOC.
On Thursday, 10/30/14, China promises to support the important sectors such as housing, e-commerce, tourism and education with more stimulus. Railroad stocks explode higher. The SSEC gains +0.8%. European markets bounce and begin moving strongly higher as traders sniff out an ECB quantitative easing announcement likely coming over the next few weeks. Europe is moving into a bad news is good news mindset like the States for many years. It is great news for bulls that the banks are hurting this morning since this virtually guarantees that the ECB will provide more stimulus. Long traders dance with glee as they plan to continue raping the upside in European and US stocks with the central banker’s easy money.
On Friday, 10/31/14, a Halloween treat is provided with a double whammy of Japan shock and awe. The Nikkei Index is sent higher in early trading following the US rally and on news that the Japanese Government Pension Investment Fund (GPIF) plans to increase the weighting in domestic and foreign stock positions by 25% across the board. The dollar/yen jumps to 109.40 and the weaker yen catapults the NIKK up +1.4%. Traders ignore the tame inflation and weak household spending data for Japan since the BOJ and government policies are focused on pumping the stock market higher. The equity markets are clearly manipulated by the central bankers and propped up by money printing. After an afternoon policy meeting, BOJ Governor Kuroda shocks the markets by announcing more stimulus. Japan fires a double whammy money bazooka promising to buy 25% more stocks in the government pension fund as well as providing more easy money. Banzai!! The dollar/yen explodes higher to 111.57 (7-year low in yen). The NIKK rocket launches over +5% and settles up +4.8% to 16414 to a 7-year high. US futures catapult higher. S&P +21. Dow +180. Nasdaq +59. The central bankers are the market and continue to pump the stock market with money printing for the last six years. The SIP data feed outage yesterday coincided with a purchase of 15000 E-mini S&P’s so obviously the insider’s are told ahead of time so they can make easy stock market gains in a few hours time. Is Wall Street rigged? Of course it is. The Japan decision is Abenomics on steroids and smacks of desperation since the inflation target of 2% remains difficult to attain. Japan is cheapening their currency through money printing. Global currency wars continue as nations compete in a race to debase; a race to the bottom. China indexes jump higher. SSEC +1.3%. HSI +1.3%. Aussie markets run higher on the news. SPASX200 +0.9%. Banzai!! European indexes launch on the Japan double-whammy news. CAC +2%. IBEX +1.8%. DAX +1.6%. FTSE +1.2%. The trading session begins with equities launching higher continuing a global short-covering rally. The major indexes explode over +1% higher. The market bears are running for their lives. Semiconductors leap higher with SOX up +3.5%. The day ends with the equity markets gapping higher on the Japan stimulus announcements. Halloween is a trick for the bears and treat for the bulls. The SPX gains 23 points, +1.2%; a new all-time closing high at 2018.05 The twelve-day rally is a phenomenal parabolic move higher that began with Fed’s Bullard comments that more QE is on the way. In about two weeks time, the SPX moves from 1820 to 2018, a huge 200 handle turnaround, nearly +11%. The power of the central bankers is impressive although obscene. Free markets died in late 2008 and early 2009 when the Fed bailed out the banks and other companies such as AIG and GM and began the quantitative easing. The Dow moves from 15860 to 17396, 1536 points, nearly +10% over the last few days. The COMPQ is up from 4123 to 4642, a ridiculous 519 points, nearly +13%! The RUT rallies from 1040 to 1174, 134 points, +13%! Major indexes simply do not move over +10% in a matter of days unless goosed by the central bankers. When traders were expecting the ECB to pump the markets higher with stimulus, instead the Japanese government pension fund and the BOJ fire a double-whammy money bazooka creating a shock and awe wave of easy money. Traders expect a further upside orgy with ECB President Draghi announcing stimulus next Thursday at the ECB meeting or in the weeks ahead. The central bankers are the market; can it be any more obvious? Bullish traders are celebrating into the weekend raping the market upside with the central banker’s easy money.
On Tuesday, 11/4/14, the SSEC is at 2431 at highs not seen since early 2013 and about to break higher up to numbers comparable to early 2012. The PBOC’s liquidity injections into the banks over the last few months and the Japan QE shock and awe last week create the gains. ECB President Draghi will be forced to fire the QE money bazooka since the central banks are the only mechanism available to pump stock market prices higher.
On Wednesday, 11/5/14, the recent PBOC stimulus pumps the infrastructure and power and energy stocks higher. US stocks are boosted after the elections that give the republicans control of Congress. Fed’s Kocherlakota, an uber dove and the lone dissenting vote at the last meeting wanting to see more quantitative easing, flaps his Keynesian wings and says the first rate hike should be pushed out of 2015 into 2016. Trades buy stocks and raise wine glasses toasting Kocherlakota’s praise for zero interest rates forever (ZIRP Forever).
On Thursday, 11/6/14, Draghi says growth is slowing which leads to a lowering of GDP targets moving forward and the need for more stimulus. Draghi says there is unanimous commitment from all ECB members to use unconventional measures to support the economy (although many members are opposed to implementing full-blown QE). He says there are increasing differences in the member nation economies hinting that further monetary easing measures are coming to help the weaker countries. Draghi says the ABS program will continue for two years. Draghi says media reports are overblown about dissention in the ranks and he says the ECB membership remains united although willing to discuss differences. Draghi says, “It is fairly normal to disagree about things.” The dovish ECB words create a frenzy of stock buying. European indexes rocket launch higher. DAX +0.8%. CAC +0.6%. US futures run higher fueled by the non-stop central banker joy. S&P +7. Dow +84. Nasdaq +18. Stocks run higher as Draghi speaks. US Treasury yields move higher with the 2-year at 0.53%, 5-year 1.65%, 10-year 2.37% and 30-year 3.09%. The 10-year yield gains four basis points in a heartbeat. Copper is at the flat line. The central bankers are the market.
On Friday, 11/7/14, The dollar/yen is above 115. Banzai! The NIKK is up +0.7% in the early going above 16.9K. SNE bounces +3%. Other exporters such as Panasonic are also boosted by the weaker yen creating a positive mood. The three-week rally is a phenomenal parabolic move higher that began with Fed’s Bullard comments that more QE is on the way. Other Fed members promise more dovish action, the BOE hints at more stimulus, the PBOC injects billions into China’s economy, the BOJ announces QE shock and awe on Halloween and the ECB promises a QE program in the weeks ahead. Obviously, the central bankers are the market and created the parabolic move higher in stocks off the bottom last month. Typically, stocks take the stairs up (long rallies) and the elevator down (sharp drops) but the vertical rally shows that the bulls have taken control over the elevator as well. In only three weeks time, the SPX moves from 1820 to a new all-time record high at 2034, a huge 214 handle turnaround, nearly +12%! The power of the central bankers is impressive although extremely obscene. Free markets died in late 2008 and early 2009 when the Fed bailed out the banks and other companies such as AIG and GM and began the quantitative easing programs. The Dow moves from 15860 to 17575, 1715 points, nearly +11% over the last few days! The COMPQ is up nearly +13%! The RUT rallies +13%! Major indexes simply do not move over +10% in a matter of days unless goosed by the central bankers. It is all as plain as the nose on your face. Smart traders are raping the upside for all its worth courtesy of the Fed and other central bankers until it all falls apart.
On Sunday, 11/9/14, China President Xi talks up the economy and highlights ongoing and future investment programs. China announces a $40 billion stimulus plan for infrastructure more closely linking China to its Asian trading partners. World governments continue to pump markets higher with easy money.
On Tuesday, 11/11/14, more shock and awe from Japan. The dollar/yen is 115.50 and climbing higher to 116. Banzai! The weaker yen yesterday created the up move in US stocks and new all-time highs. Japan PM Abe says the sales tax hike may be delayed and a snap election may be called for the government. The delay of the sales tax bludgeons the yen lower, dollar/yen pair higher and sends the Nikkei Index rocketing higher. The BOJ is in the stock market purchasing ETF’s. The NIKK jumps +2.1% closing at 17124 a seven-year high at 17K. Japan continues to goose its markets with easy money and promises of rainbows and sunny skies forever; the party, however, will likely end in financial collapse in the coming months.
On Wednesday, 11/12/14, the NIKK is up +1% above 17.2K out of the gate printing a new seven-year high fueled by the weaker yen. Dollar/yen 115.80. News reports say Japan PM Abe is delaying the sales tax hike and will call for a snap election within the next month. Abe has not yet confirmed the reports. The tax hike delay news, however, continues to send the Nikkei higher.
On Thursday, 11/13/14, Fed’s Dudley says it is too early to raise rates. Dudley wants to see higher inflation before the first rate hike. European stocks and US futures bump higher on the dovish talk. The ECB survey of economists reports a drop in forecasts. The weak economic commentary encourages traders that the ECB will act with more stimulus. Bad news is good news since the central bankers are the market. European stocks and US futures remain buoyant.
On Monday, 11/17/14, the potential delay of the Japanese sales tax hike created strength in Japanese and US stocks during the back half of last week. Traders expect the GDP number to be very weak thus delaying the sale tax hike. The worst than expected number will pave the way for Abe to announce snap elections and delay the sales tax hike for six months or one year. The dollar/yen jumps to 116.92 and then prints above 117 at 117.04 a new seven-year high. Fed’s Powell says low rates are not creating asset bubbles in markets. Maybe he should remove those rose-colored glasses? A dividend stock bubble as well as general multi-year stock market top may actually be at hand. Since its inception in 1913, over 100 years ago, the members at the Federal Reserve have never been able to predict an asset bubble ahead of time. At 10:25 AM EST, ECB President Draghi says the members are unanimous in using unconventional measures to boost the European economy. Draghi says, “Buying government bonds (sovereign debt) is an option.” Stocks rocket higher since the buying of European government debt was uncertain but Draghi now says it is firmly on the table. The central bankers are the market. European indexes catapult higher on the news erasing all of today’s losses. The SPX pops above 2042. European indexes finish the session at the highs after the Draghi pump. DAX and CAC are each up +0.6%. FTSE +0.3%. The IBEX is up +1.6% turning around a huge 2.6 percentage-points intraday. The central banks are powerful and as long as traders believe in the magical abilities of the Fed, BOJ, ECB, BOE and PBOC to print money, markets float higher. Shamefully, the sick banks rally strongly. Italian banks are up from +3% to +4% across the board since the ECB will likely buy their garbage paper.
On Tuesday, 11/18/14, Europe indexes begin the session trading higher up from +0.3% to +0.6% across the board buoyed by ECB President Draghi’s comments yesterday about potentially purchasing sovereign bonds. It is amazing that the central banks and governments are in complete control of the global stock markets and yet market participants are sanguine about this ongoing intervention and manipulation. And why wouldn’t they be? The obscene central banker money printing has made the wealthy filthy rich over the last few years so for those that own stocks (the upper middle class and the elite) every day is a joyous party. In this new modern day bazaar world, bad economic data is cheered since it will cause the central bankers to provide more stimulus to pump stock prices higher. Investors believe the central banks will continue to print money indefinitely. The party continues as long as everyone has confidence in the central bankers; it will all come to a crashing end when confidence is lost. There is no allegiance to staying bullish long term. Traders and investors are simply raping the market upside courtesy of the Fed and other central bankers. Once the markets roll over, traders will toss stocks in the trash can like throwing out an old worn-out rag. Japan PM Abe confirms that the sales tax hike will be delayed. The stock market explodes higher day after day fueled by central banker easy money while fundamental economics are ignored. Corporate executives, bankers, politicians and other elite are creating huge sums of wealth for themselves with the blessing of the Fed and at the expense of the common citizens. The middle class has disappeared in America with an upper middle class (that own stocks) joining the elite upper class while everyone else (that do not own stocks) is lower middle class and poor mired in debt without job opportunities. The Fed and other central banker easy money allows the elite to use financial engineering to pump stocks higher rather than buy capital equipment or hire additional workers to help put people back to work. The bankers and other elite then pay back the Fed members for their collusion by paying former officials such as former Chairman Bernanke huge $250K speaking fees for a token luncheon. Fed Chair Yellen is salivating knowing that in a couple years she will receive these obscene monetary kickbacks for her service to the wealthy and live a life of luxury. The country appears broken. The elite are raping the stock market upside each day; other power brokers are taking advantage of any loophole possible that allows for easy profits and monetary gains with little effort regardless of whether it hurts America. In respect to the disadvantaged and poor in the US, the response by the elite is the same as Marie Antoinette’s famous quote when she learned that the peasants had no bread, “Let them eat cake.” Compassion for the less fortunate is lost in America and in the world. The country has descended into a narcissistic Caligula-style party each day with many Americans only concerned about short-term materialism and daily self pleasure. There is a total disregard for the future of the country even though the power brokers profess faux concern. If there was ever a time for a serious reset for the US the time is at hand so prepare yourself for any coming storm. Reduce all debt and save and set aside a large cash reserve. Make preparations and separate yourself from the ongoing debauchery; do not look back at the city of Sodom.
On Friday, 11/21/14, ECB President Draghi pumps the global stock markets overnight saying he is ready to act to tackle low inflation. Draghi talks dovishly promising more stimulus. Traders thought that Draghi would not announce new stimulus measures and potentially sovereign bond buying until early 2015 but now over one-half of traders believe he may announce action at the December meeting only days away on 12/4/14. Interestingly, behind the scenes, the Fed and BOJ are becoming increasingly concerned over the drastic drop in the yen. Draghi says, “We will do what we must to raise inflation expectations as soon as possible.” Global markets rocket higher. The euro plummets from 1.2555 to 1.2435 on the dovish promises. European indexes catapult higher at the opening bell. DAX +1.7%. MIB +1.7%. CAC +1.2%. FTSE +0.4%. German bund (10-year yield) is 0.79% remaining subdued so traders are buying both stocks and bonds with the ECB’s easy money. At 5:30 AM, the PBOC announces shock and awe cutting interest rates for the first time since 2012. The one-year benchmark lending rate drops from 6.00% to 5.60%. The one-year benchmark deposit rate drops 25 bips. The PBOC slightly lifts the ceiling for deposit rates. Global markets catapult higher doubling the gains from Draghi’s dovish talk. Obviously, the central bankers are the market. The global race to debase continues. US futures go vertical. S&P +13. Dow +114. Nasdaq +25. The US indexes were set up to roll over on the daily charts so the collusion by the central bankers saves the day. Dollar/yen 117.79. Euro 1.2448. The Aussie dollar leaps above 0.8700. ECB President Draghi continues pumping markets announcing the start of purchases of asset-backed securities today. This action is dubbed QE Light. Full-blown quantitative easing would be in play if Draghi announces sovereign government bond buying which appears likely going forward after his speech this morning. The Dow is at new all-time highs above 17.8K for the first time in history. Ditto the SPX above 2060 and running above 2070. The COMPQ moves above 4750. European indexes close with a sea of green; every nation across the pond prints higher stock markets. Italy is up an obscene +3.9%. Since central bankers plan on pumping stocks traders are buying the most beaten down garbage to ride easy gains higher. Spain’s IBEX is up a huge +3.1% above 10.5K. CAC +2.7%. The DAX is up +2.6% to 9733. The FTSE came on strong late in the session gaining +1.1%. The ECB and PBOC create a shock and awe market melt-up. Draghi is now all-in committed to providing full-blown QE in the future and the question remains how he can purchase government bonds with all the different member countries in play and especially Germany remaining very cold to the idea. Draghi promises a brand new government bond purchasing full-blown QE pony so he had better deliver that pony perhaps before Christmas. European indexes are generally up about +3% this week. Europe moves into the weekend joyously celebrating the central banker’s power and influence on global markets. The week ends with the fifth straight up week for the SPX gaining +1.2% this week. The SPX is up +13% off the 1820 bottom in mid-October. The historic rally is parabolic up 240 SPX handles in only 27 days.
On Monday, 11/24/14, Asian indexes are a sea of green. The new trading week, and holiday-shortened week in the States, begins in a festive party mood. The PBOC lowering rates on Friday creates a wild upside orgy in Asian stocks. China is already talking about further cuts increasing the feeding frenzy. Chinese banks, brokerages and especially property stocks catapult higher. All 65 of the 65 major real estate stocks are substantially higher from +3% to +15%. The lower rates will pump the Chinese real estate bubble larger. All 11 major financial stocks are higher. The Shanghai Index hits a three-year record high with the SSEC gaining +1.9% to 2534. The SSEC begins printing new three-year highs day after day. The HSI is up +2%. The central banker-fueled five-week stock market rally is historic. The SPX is up from the 1820 low in mid-October to 2070, a huge +14%!
On Tuesday, 11/25/14, the SSEC is up +1.4% to a new record three-year high. At 8:30 AM, the first revision to Q3 GDP is +3.9% only one tick from a four handle beating the expectations at +3.3% to +3.5%. Consumer spending increases. Apple is all the rage these days as the market capitalization approaches $700 billion. Traders are buying at any price with the stock gapping up each day. AAPL is sending the Nasdaq Indexes to new record 14-1/2 year highs each day. Television personality James Cramer advises television viewers to buy and hold AAPL at these levels above 119. Cramer says “Apple is trading at a discount to the S&P 500” and is an attractive valuation despite the high price. AAPL has run from 95 to 120, +26%, in only 30 days. Cramer cites technician Mark Sebastian that predicts the SPX will move above 2100 and the VIX will drop to 10. The parade of market bullishness continues across the television and computer screens. The wealthy dance with glee lighting cigars and back-slapping each other while poking fun at the stupid middle class and poor that do not own stocks. The SPX, TRAN and AAPL print new all-time highs. Apple is over $700 billion in market cap (at 119.36) which is more than XOM and JNJ combined. The Nasdaq prints a new 14-1/2 year record high. TRAN gains +0.6% with gains in trucks, trains and planes.
On Wednesday, 11/26/14, SSEC is up +1.5% to another three-year record high at 2605. HSI +1.1%. SPASX200 +1.2%. ECB Vice President Vito Constancio says the central bank can decide on buying bonds as soon as Q1, music to bullish ears. The orgy of easy money will continue pumping the stock market higher forever.
On Thursday, 11/27/14, Thanksgiving, the SSEC prints another record three-year high up +1% to 2630. Samsung catapults +7% higher on the buyback news. Buybacks have fueled obscene gains in US stocks over the last couple years. The buybacks are funded by a company’s cash reserves as well as the Fed and other central banker’s easy money policies. The central banker intervention does not improve the economy but instead makes the wealthy that own stocks wealthier due to buybacks and other financial engineering encouraged by the wash of easy money liquidity. Traders expect Draghi to announce a full-blown QE program to buy sovereign bonds (in addition to the ongoing corporate bond purchases dubbed QE Light) as early as the next ECB meeting on Thursday, 12/4/14.
On Friday, 11/28/14, The SSEC continues a seven-day winning streak up +2% printing another record three-year high. China stocks are an outperformer in November with the SSEC up +11%. Traders are sniffing out more ECB stimulus including full-blown QE with the purchase of government bonds and are ready to rape the upside in European stocks just as US stocks were ridden higher over the last few years. No one cares about weak economies and data. The only thing that matters is central banker’s printing money that sends stocks higher. If you are upper middle class and wealthy the gains in stocks are fantastic. If you are lower middle class and poor and do not own stocks you continue to fall behind in life financially since the central banker easy money does nothing to boost your dilemma. Companies use the easy money for financial engineering offering dividends and buybacks to pump stock prices higher instead of buying capital equipment or hiring workers. The SPX prints a new all-time high at 2075.76. Trannies print a new all-time high as stocks dependent on gasoline and diesel fuel surge higher. TRAN prints above 9310 up +1.2%. The COMPQ prints a new 14-1/2 year record high at 4811. The NDX, Nasdaq 100, prints another high and is up from 3700 to nearly 4350, +18%, in only 31 days. 45% of the huge move in the NDX is created by Apple. MSFT also pumps Nasdaq Indexes higher. For the week, the SPX is up a marginal +0.2% up for six consecutive weeks. The Dow ekes out a small +0.1% gain this week continuing a six-week up streak. The Nasdaq is up +1.7%. TRAN is up +1.1%. For the month of November, the SPX and Dow are each up +2.5%. The Nasdaq gains +3.5%. TRAN gains +5.1%. AAPL is up nearly +11% during the month creating big gains and optimism in US stocks.
On Saturday, 11/29/14, as the dust settles after the historic 31-day rally, the SPX catapults from 1820 to a new all-time high at 2076, a colossal 256 points, +14%. The Dow rallies from 15855 to new all-time record highs at 17903, an enormous 2048 points, +13%! Obviously, markets do not function like this normally. The rally is the most robust ever in history and created by the collusion of the global central bankers. How long will traders and investors maintain their confidence in the modern-day central bank 'money changers'?