Lots of Disbelievers..
In a final wave bull market in stocks.
In spite of the the last seven days actton, this was a good digestion day after the bottom confirmation last week and the rally close over SPX 4444 on Friday. Now the market needs to do some work before scaling the SPX 4662 level.
In the near term I would expect most of the action to be in the 200 zone, SPX 4384 to 4584 area. The 9.0T balance sheet is the driver.
We will be putting out a special “9.0 Trillion Dollar Market Study” sometime in the next few days, where we will discuss:
1. the FED Balance Sheet..
2. The embedded Long Term Inflation Wave..
3. The inability of 25 or 50 point Fed rate increases to curb embedded inflation…
4. The ramifications of Fed pushing a short end rate increase and the resulting inversion of the yield curve.
5. The long story of how this inflation wave is the result of 40 years of voodo economics…
6. Why the FED will wait way too long to cut the the Balance sheet by a minimum of 3.0 to 4.0 Trillion dollars.
7. The clue, the only way to stop this inflation wave will be to kill both the economy and the stock market.