Superior Trading Skills through Education

Now we know why...! Print
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Friday, 14 July 2017 12:43


A picture tells a thousand words.

Lat month the Fed and Janet Yellen's comments, led the market to belive we were on the hawk trail to higher interest rates, 'normalistion' they called it. With that, commentators were falling over themselves to call the end of QE, actual tapering would be just a few months away...lardy dar, etc. Read more, plus the charts...

This month, and today, realism just kicked in. Now we know why, during her testimony to congress this week, Janet switched tack, moving well away from hawkish comments to those of the Dove. The mealy mouthed statement and Q&A did nothing to clarify but showed up even greater Fed confusion. Or was it confusion, no, she knew what today's numbers would show. 

The reality is that the US economy in is deep do-do. The Fed have been in denial over the last couple of years, presenting massaged numbers to the world while the average Joe and Josephine were living through higher costs of living with squeezed wages and lower full time employment available.

As the numbers just came through, Gold jumped (a nice Hikake pattern we traded), the DXY, US Dollar Index, dropped through it's June supports (4 hr chart Harami play). But what of the stock market? No worries here, the Dow is almost through it's all time highs. Sure, the economy is shot, but the Fed has our backs. Normalistion, not a chance, this must mean more cheap money coming our way!

DXY Harami from TMEST



Gold play from TMEST



From the blog

Stock Market Manipulation

Stock market manipulation

The second story is how the stock market is about to collapse. The story is getting a little stale now as each mini sell off leads to another rally. Is it because the US Fed has put on hold any more rate rises or is it because of the impending wonderful US-China trade deal, etc?

Back in 1982 stock market manipulation was made legal. Not all manipulation of course but just share buy backs by companies. US congress is now getting hot and bothered. They have only just realised that Trumps tax cuts, and offshore repatriation of overseas company profits, were spent buying back their own shares, not paid out as special dividends. And so they want to ban buybacks again.


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