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'?
