The most vital of areas at this time is perhaps the debts accrued by major banks and companies that have relied on overnight loans to facilitate massive stock buybacks. It has been these buybacks that have artificially supported stocks for years, and whenever ZIRP was not enough, the Fed stepped in with yet another QE program to give particular indicators a boost. The main purpose of this strategy was to ensure that markets would NOT reflect the real underlying instability of our economic system. The Fed has been pumping up banks and markets not only in the U.S., but across the globe. Why? We'll get to that, but keep in mind that it takes time and careful strategy to wear down a population and condition them to accept far lower living standards as the "new normal" (and it takes a sudden crisis event to convince a population to be happy with such low standards given the frightening alternative).
Also see (where STB sits) -
This is why (buybacks) so many analysts simply cannot fathom why the Fed would raise rates, and why many people fully expect the introduction of QE4. But we need to ask some fundamental questions here…
I'm obviously or record thinking they will/can never raise rates. If I'm wrong and they do raise rates so be it. In the end I'll have been right, and they never should have raised them in the first place. If anything a rate rise will expedite my QE call and at least hasten the end of this mess. This would bring us conspiracy nuts full circle - is the government ready for the ensuing chaos? That's been the big question all along. Then the War question? Then the Obozo dictator question? A rate cut makes things get real juicy real fast.
On to the lie -
SPX Daily - This chart did wonders for STB for years, but it has lost some of its luster now that the multi-year channel is now broken. The breakdown is clear and technically clean. What happens next? Well, a further breakdown should be in order, but in this manipulated and controlled farce you never know. I'll hold off on any speculation till the Fed speaks and we get the markets reaction. Updated upper and lower targets will be out later. For now, my 1820 and 1750 remain the first lower targets and 2064 is the first upper target. These targets represent the wide range of consolidation I think price will remain in for a while unless the Fed really screws things up.
Freedom watch -
Trump hits another STB hot button endearing him a bit more to me, and Carson proves he's a shill for the establishment here - Trump: Vaccine Made One of my Employees’ Children Autistic
More to come below.
Have a good day.
GL and GB!