The reason that traders are complacent is obvious; the wild orgy of money printing ongoing from the Fed, ECB, BOE, BOJ, China, and even emerging markets, is telling traders to not worry at all, go long and stay long, since the flood of liquidity says markets will grow to the sky. Interestingly, not one pundit has yet asked the question about what happens when every major central bank is easing at the same time? Is it really the major bullish event that traders think, or, is the entire boat simply rising and falling and the net benefit is not what would occur, say, when QE1 and QE2 occurred since this was mainly a solo U.S. liquidity program? The answer is that we do not know what happens when all CB's ease since this is the first time in world history that it is happening.
The 10 MA is above the 21 MA which is market bearish (CPC moving up), watch to see if the market bears can gain further credibilty moving forward if the 17 MA moves above the 25 MA. Note that the last high print was in mid-December which called the bottom in the markets (CPC 1.26). The CPC has not been above 1.1 ever since. The market bottoms are called as the CPC moves above 1.2, currently, we are at the other end, where market tops are called as the 0.7's are printed. Projection remains for a market sell off at any time. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.
KS, I think all this money printing will keep markets afloat longer than us bears can remain solvent sadly. It's an "all-in" strategy from central banks to save Europe. Inflation is bears' only hope to stop all the printing so I'm cheering for $5/gal gas prices. What do you think about ECRI standing by their recession call this year? Archutan says that recession will hit by 2nd half of this year. Take care and I enjoy reading your insightful blogs but I'm too chicken to short silver.
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Hello Steve, well, the money printing may keep it all afloat, then again, the world has never experienced coordinating easing by everyone all at the same time before. Keybot provides th esmooth path so the algorithm is long at the moment. Still looking for a pull back, simply a matter of how much before dip buyers come in.
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