Wednesday, July 20, 2016

Fed's 'Urgency' Concerns Us

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There is no follow through in intraday US markets.
We show that the break-out was based on a stars-aligned event.
Everybody including all CBs are in and maxed and NOW the US Fed wants to raise rates ahead of elections.
And the Wall Street Journal snuck in the word "urgency".
This is an incredibly risky setup for markets.
Ever since the jobs report we've noticed that the stock market (NYSEARCA:SPY) has no intraday follow through. That is not a sign of a typical bull market. CBs may want you to buy into the breakout. But the Fed added a word in the Wall Street Journal ("WSJ") which concerned us, "urgency." Slow economies don't typically deserve urgency unless inflation has sprung.
Here is the reason that we think the market is up overnight but not up intraday.
Global central bank ("CB") money is up. This is not news.
Source: Monetary Watch
(This won't stir inflation will it?)
Europe CB money is up. This is not news.
ECB: Above shows the size of the ECB balance sheet building and building some more. (This won't stir inflation will it??)
And US money is not up of late but it's way up historically. The US is not the new buyers. If anything the Fed has pulled back of late which may be a sign of tightening.

Chaim Siegel has been working with hedge funds and mutual funds as an analyst and PM his entire career. Chaim specializes in earnings and predicts, analyzes and reacts to earnings and earnings events as well as developing current company stories with a hedge fund perspective. If you want his analysis real time sign up to the right for real time email alerts. #in, $spy, $qqq, $iwm, $vxx, $ycs, $fxe, $EUO, $YCS, ^GSPC, INDEXSP:.INX, #elazaradvisorsllc, CME Globex: ES Disclosure: These trades can lose you money and principal especially when using leverage BY USING THIS SITE YOU AGREE TO TAKE ALL RESPONSIBILITY FOR YOUR OUTCOMES AND LOSSES AND HOLD BESTIDEAS, ITS CONTRIBUTORS AND ELAZAR ADVISORS, LLC HARMLESS

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