It would be foolish to think the market is topping right now. The reaction to the Fed’s position on rates is having a deleterious effect on the dollar, now down more than 1% v the euro, which is buoying commodities, and by extension, stocks.
Massive gains are abundant without pause in all of the commodity sectors. My favorite tell is FCX, a company racked with debt and massive exposure to copper and also oil. We are rallying because the bears are weak, flaccid, pathetic sub-humans. Any interest rate hike will cause panic and sheer horrors for this market, yet the specter of it seems so far away.
Irrespective of what the market is bound to do here, or throughout the month of March, I do not believe there is a significant downside to this tape. If anything, we will grind higher and continue to climb the wall of worry. However, come late April and early May, dislocations will be more than a maybe, but a certainty.
Enjoy these last few weeks of hedonism and be sure to save for a rainy day, for a deluge is coming and you’re gonna need an ark to survive it.
If you enjoy the content at iBankCoin, please follow us on Twitter
My Favorite Indicators are the NZD and AUD…they should sell this rally asap. China is not buying commodities, Draghi and Kuroda is not going to allow a weak dollar. Just ugly.
what a terrific day…. was expecting a hawkish tone and it was dovish…. My bear coat has to go back in the closet for a bit longer.
2016 the year of the Tangible
bears are stronger more noble than you shithead sheep any day, rising wicked over the greedy dunce followers required for suspension of reality
U.S.Rome of A
This market behavior will end up being about mean reversion. Mathematics says this market goes lower either by a crash of up to 50%-60%, or by underperformance for multiple years. Compare the long term average annual return on stocks since the Great Depression vs the average annual return on stocks since 2009 and reach your own conclusions.