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Ah, sweet anticipation. We all know the Fed meets in 11 days. Usually that would have most market participants as jumpy as a cat on a hot tin roof.
But not this time.
It's quite true that this is an era when central bank moves (or lack thereof) shift markets with great regularity. I've even made the case recently on CNBC's "Closing Bell" that central bank intervention is the driving force keeping U.S. stock indexes at "the top of the page."
For the CNBC viewers I made the simple example of how I'd teach my third-grade economics students (Kelly Evans, the show's host, said she'd like to meet those third graders…).
I explained that right now, the markets are acting like a balance scale. Let me show you…
This Explains Everything We're Seeing Now
If we put all the bad or bearish stuff in a basket on one side of the scale, we'd put in the U.S. corporate earnings recession, the China debt bubble, and other poor global economic data.
And in the basket on the other side of the scale, we'd plunk down central bank monetary intervention.
And time and again the central bank side is winning… and keeping the stock market near all-time highs.
In this environment of central bank dominance, we have an upcoming Fed meeting and almost no one thinks the committee will raise interest rates.
And this perception of "no action" by the Fed in the November meeting is not just hearsay. The Chicago Mercantile Exchange (CME), one of the major futures exchanges in the United States, has a fed funds rate futures contract that provides institutions a tool to hedge their portfolios against the effects of Fed rate decisions.
This fed fund contract allows us to look at how traders and institutions are positioning themselves, and therefore gives us a probability for a rate hike at any given Fed meeting. And that tool currently is only giving a 9.3% chance of a rate hike at the November meeting.
Here's the graphic, published by the CME:
About the Author
Nationally recognized technical trader. Background in engineering, system designs, and risk reduction. 26 years in the markets.
Show me the STOCK SYMBOL for the drug STOCK that you refer to here in your article!
Well! Great update. Yet! Certainly Janet Yellen os holding off for great reason. Simplifying it in my own opinion. As Chinas Debt bubble boils. Yellen is controlled by this. The market itself ive noticed as so many have. It has become. Put your money in the morning. Take it out at the end of day. As a precaution. The over inflated stocks are reasons of necessary need. I say this because of the money generated and scammed by dealers. No offense. To easy to see the sleeze. But anyways. Allow investors in now while the stock looks good and healthy. Unfortunately it happens to often with investors. Who do not follow the charts or look everyday. Warren Buffet once said. You should not look at charts. Its pointless. He has never been so wrong. Charts today are easy to read through numerical sequences. The numbers alone tell you when there gonna drop for the day to scare investors off and then rise. Hence why i will never believe these algorithmic system is not rigged. To long to tell u why but its true. They can be manually controlled.
Peoples awareness must be marketed and told to those. Its only fair but i know in the market. Anything goes for the big boys with protection. Sad but true.
Now! If Janet Yellen were to hike these rates now before the end of the year. It would create mayhem. People already live in a fear created by them and also struggle to survive. America can try and hide the real truth but i know its a wolf in sheeps clothing. The epidemic may never come. I dont believe this time the bubble will burst. They wont allow it to. There buying time for capital needed for secret projects on hand as a safety precaution. Its money needed for preperation and time is the essence as the truth is unfolding. Rapidly. If you look up in a nights sky. This should raise awareness to the public. What our governments are truly focusing on. And that is around the world and every natio. Hence why there dumping money in Irac as well.
Now! Human algorithums are essential during this time. Meaning. If Warren Buffets inside trading info entices him to invest. Its cause theres a calm and a knowledge that leaves no worry or fear. We all know.
Now! I cannot afford his investments but hey. When your him. You get anything as he truly is a feeder to the world of dogs. But i dont believe he is a great stock picker. How can you be? When there coming to you cause they need your money. Id say thats inside info. Wouldn't you? Lol
Fortunately the truth lies in actions of those who know. If your 3rd eye is listening and absorbing the markets surroundings. You should be able to see the forest through the trees. I say this because of all the mirages and fake paintings being handed out for free to anyone silly enough to listen. Thats why when i saw every broker hurding the knowledge of gold to everyone. Those actions of others were misinformed by the big boys and everyone fell for it. It was way to premature which i knew once Bill advertised GG. Goldcorp. It was not happening. Usual method. Routinely went up a few bucks then fell. These actions of Bill are a system on there own if your willing to absorb his timing of things. Very very smart man and very resourceful. But stop hurding your sheep to prematurely. Timing is everything. Ive learned all of it from you guys as i am very knew but learn very very quickly. The respect is huge from me but The fine tuning is needed to help clients take from the monsters whom pray on stupidity.
So! One day when i can truly invest and have money to do it and get a computer. I will create the universal system after ive absorbed the missing pieces of this puzzle im putting together.
I hope you all benefited this quarter from the green gold companies i gave to you. Have a good day.
Patch