patrick.net

The Stock bulls are presently being held captive by the montra to never fight the Fed (meaning do not bet against them)

The biggest example of this was when the taper talks hit a too hawkish tone and investors betted bernanke will start tapering in September 2013.

The Fed meeting that month had all the officials agreeing to tapering with bernanke not disagreeing. But when his decision was made, he rejected tapering that month and Fed officials said that he went against everything in that meeting.

Stock bulls know that if their trades mount against the Fed, the Fed chairman goes mobster and breaks some legs to spread fear that you don't bet against them.

So stock bulls are stuck gambling short term while in reality they should just exit and wait it out for years because the sell part is really important in the end ....and yet they can't see the Fed will turn on them and vanish with all their money.

If a QE4 is imposed the Fed will need to do an even bigger QE where pension funds go Detroit in high income cities like Irvine. The reason is that to sustain the economy these cities pensions will be taxed into oblivion.

Taxed via inflation and lost interest income!

So people will question this odd trend where businesses are continuing but pensions are not. That is where the scam gets exposed that savers (pensioners, insurance policy holders, bank depositors) get sacrificed so that the economy even continues.

People don't see that insurance in essence is savings as well and relies on bonds to park their money.

So to undermine the whole structure of savings is where a central bank does not to get into because it is the bedrock of capital formation.

Meaning some saver is the guy that actually invests in new and better ideas to form actual new companies and forms jobs.

The stock monkeys are just moving money around via stock buy backs and do not provide society new ways to progress.

Has the Dow ever looked set to increase in your view?

darlag says

Dow Jones Industrials look set to resume

I sure hope so. Last week was pretty damn good.

tatupu70 says

Has the Dow ever looked set to increase in your view?

Only during a nightmare.

Today's expected lackluster performance (NYSE breadth .726:1 ) added to the likelihood that the current wave is counter trend. But this is a Fed week after all, an emotional time for Fed watchers and analysts. Anything could happen if the Fed suddenly finds some heretofore unknown data that the markets deem to be marvelous. Probably not, but I've been surprised before.