Overnight Session...The Selloff Continues.
From Greg M
As we expected, the inaction of the Federal Reserve/they not raising rates, caused Wednesdays stock market rally to reverse and finish negative. Well, the selloff is continuing in the futures markets. Keep in mind that this may change as the overnight session goes on, but the fact that the Fed. Did not raise rates when the market was clearly pricing one in is not good.
Things are clearly MUCH worse than even I believed they were…
Keep your eyes on market drivers, and the MMRI.
I will keep you informed.
GM
God Bless and Protect you for sharing your wisdom with us!!!
If the FED fails to deliver rate hikes next meeting, I can see the market crater substantially. "But", i also think that what will happen, like what I think is going to happen between now and then, is the FED continue to increase their balance sheet to keep markets stable. Powell mentioned the pandemic in his opening statements, and he will continue to keep using the pandemic as the fuel for the game to keep the financial markets in tune with a "normal economy", even though he just killed what's left of the economy today. So, in my opinion, i believe the market will either remain flat between now and then or it will go much higher. The next time he pulls this stunt, i think the market will nose dive even more, but the FED will be using the same excuse over again just to keep their balance sheet increasing. It doesn't matter what they do or say at this point, the market will remain at the top or go much higher. There is going to be no real "crash" anytime soon, until they bring us back to 2019. The real reason why is because they did allow the market to crater during March of 2020. They allowed this to happen in order to expose their final end game...and now they just did it again, but without a "in the moment" narrative. During 2020, everyone blamed the virus and lockdowns for the crash...but now, the only ones to blame are the FED's inability to act. Their agenda is the same, but the timing and coordination is different. If the FED is unwilling to show some kind of credibility today, then this just shows that they most likely will never show any credibility anytime soon, but they still do have one goal in mind, which is to keep the economy and the markets "appearing" extremely well off.