Fed Game Accelerates
Fed Bully Pulpit yield curve manipulation has been trying to push market down, three pushes down to SPX 4370. since 1/25.
The SPX 4370 to 4570 trading range has been fun, but it is getting a little old. So rather than wait for the 4662 level to be breached on the rally I am adding leverage this morning and going to the optimum position size for the blast up out of here.
All the arguments behind what I am doing have been covered at length in our blog posts over the past couple of weeks.
Update at 10:15 AM CDT…China
A little side item here, kind of getting lost in the Fed mania in the US, and that is China and how this week the March 14 and 15th island bottom has held.
For a bigger picture view of what every market participant faces these days, and that is the fact that markets are controlled by rulers, not economics these days.
Here is the China stock chart going back to 2014, you see the reaction back in 2020 when the Rulers decided the market was too high, now they have gotten it down to long-term support levels. We in the US are only a bit less constrained by Rulers. Rulers control, free market economics are second fiddle.
2:10PM CDT Trading update..
I obviously was a couple of days early in making a goal line stand. Perhaps it is a bit of ego as the trading accounts have done well with all this volatility, we were, on this past Tuesday, up 29 % since the January 25th 2022 demarcation line in the sand. As of this moment, assets have declined to where we are now only up 10 %. I don’t see any reason to change the overall plan at this point, but I don’t like giving up this much at a key point. We will try to stay on top of this evolving situation.