By Charles Hugh Smith Market technicians have long observed that the holes in charts left when markets gap up or down at the open of trading almost inevitably get filled later on. When the market gaps down, it will eventually rise to fill that gap. When the market gaps up, it will eventually decline to fill that open gap. Since …
One Man’s Opinion: Is The Fed Outright Buying Stocks/Futures To Prop Up The Markets?
By Phoenix Capital Research “Someone” is getting desperate. Throughout the last week, anytime stocks have begun to correct or drop, “someone” has bought S&P 500 futures to prop the market up. Anyone who’s been involved with the markets for a while knows the difference between real buyers and manipulation. This is manipulation plain and simple. Look at all those “V” …
One Man’s Opinion: The Five Stages Of Central Bankers’ Failure
Submitted by Charles Hugh-Smith of OfTwoMinds blog, Central bankers not only continue to insist their free money for financiers will eventually “trickle down” to the masses–they’re angry that the masses aren’t buying it. Central bankers are now blaming the masses for maintaining a perverse psychological state of disbelief in the omnipotence of central banks and their policies. Central bankers are …
One Man’s Opinion: Markets Have No Purpose Any More…
By Mark Spitznagel After making over $1 billion in one day last August, and warning that “the markets are overvalued to the tune of 50%,“ Mark Spitznagel knows a thing or two about managing tail risk. The outspoken practitioner of Austrian economic philosophy tellsThe FT, “Markets don’t have a purpose any more – they just reflect whatever central planners want them to,” …
One Man’s Opinion: “We Are Unsure Whether To Wear A Helmet Or A Diaper” – Merger Arb Funds Crushed
By ZeroHedge 2015 was the year of M&A (Mergers & Acquisitions): some $5 trillion in global merger and acqusition deals were announced, the highest level ever, topping even pre-crash 2007. In fact, last year there were more mega-deals, those valued at $20 billion or above, than ever. In all, there were 17 deals at or above that value compared with …
One Man’s Opinion: Is The Broader Dollar Index An Important Fed-Move Indicator?
The US dollar movement is important because every market variable is either positively or inversely correlated to the dollar, said Jurrien Timmer of Fidelity Investments. When the dollar goes down, liquidity conditions ease up, which is usually the risk-on scenario. If the dollar moves up, it means financial conditions are tightening, or at least that has been the dynamic over …