Tuesday, June 22, 2021

The Morning Call---You knew that the Fed would fold

 

The Morning Call

 

6/22/21

 

We are moving this week; so, I don’t have a lot of time to blog.

 

The Market

         

    Technical

 

            Monday in the charts.  Two things occurred yesterday: (1) the volatility from Friday’s quad witching got unwound and (2) Fed members were all over the newswires walking back Bullard’s hawkish statement on Friday.  Plus, Powell testifies before congress today and his formal remarks which are dovish were released yesterday.  I probably don’t need to remind you that every time the Market panics over monetary tightening, the Fed folds like a cheap umbrella.  So, my premise remains: ‘I can’t see an end to this uptrend as long as the money keeps flowing with abundance and in the absence of any major negative exogenous event.’  It seems like the only thing that will bring this grossly irresponsible monetary policy to an end is when investors realize how detrimental it is to the financial health of the country.

            https://www.zerohedge.com/markets/plunge-protected-boj-buying-fedspeak-bailout-fridays-bullard-bomb

               

                Or the Fed really screws up.  For instance, Morgan Stanley seems to believe that either the Fed puts no credence in the significance of M2 growth or that it is talking out of both sides of its mouth.

            https://www.zerohedge.com/markets/forget-everything-you-know-morgan-stanley-reveals-only-metric-determines-what-market-will

 

 

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What I am reading today

 

           

 

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