10/28/2015 – A positive day with the Dow Jones up 198 points (+1.12%) and the Nasdaq up 65 points (+1.30%)
Excuse my language, but the FED continues to BS the market. And as far as I can tell, the FED is attempting to maintain the market within a certain range. At the same time, it is now crystal clear what their actual game plan is. It goes something like this…..
- Can’t raise or won’t raise. Today’s economy or financial markets won’t be able to digest any rate increases at this juncture. Period. As talked about on this blog so many times before. Why The FED Will Not Raise Interest Rates If the FED members have even an ounce of intelligence, and I believe they do, they realize the same.
- If the market declines, issue a “Dovish” statement. Bring it up.
- If the market recovers, issue a “Hawkish” statement. As they did today. Remember, they don’t want things too overheated.
- Rinse and repeat while praying the market and/or the US Economy won’t implode on their own.
That about covers it. There is only one fatal flaw with the plan above. It only works until it doesn’t. It only works until the FED has any credibility left. The problem is, more and more people are beginning to realize all of the above.
And while the stock market continues to rally for the time being, the real economy (Global/US) is accelerating down. Steel demand ‘evaporating at unprecedented speed’
But hey, who needs steel demand for as long as iPhone sales are strong and/or Facebook user growth goes parabolic….Right??? Point being, FED or not, the economic/earnings/overvaluation reality will catch up to this market sooner rather than later.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. October 28th, 2015 InvestWithAlex.com
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