Fed’s Powell In Afternoon Laugher of an Interview Says Fed Will “Substantially” Reduce Balance Sheet

It was a dry, humorous interview at the Economic Club of DC, which included gratuitous laughter and nonsensical reveals about Jerome Powell, such as his uncanny ability, bestowed upon him from birth, to automatically pronounce any word said to him backwards.

PRONOUNCE THIS BACKWARDS POWELL: ECAF KCUF

— The_Real_Fly (@The_Real_Fly) January 10, 2019

The Dow turned lower after Powell made those balance sheet comments.

Highlight: Stocks take a turn for the worse after Fed Chair Jerome Powell says, "We don't know the exact level the balance sheet will end up at once quantitative tightening is over." @scottgamm reports from the floor of the @NYSE.https://t.co/ObzMOMFjVy pic.twitter.com/dojgNsZAYW

— Yahoo Finance (@YahooFinance) January 10, 2019

Why is this a concern? Because it’s deflationary and, in theory, should hurt equity prices.

#Fed's Powell: We want to have the balance sheet return to a more normal level… no larger than it needs to be to conduct monetary policy effectively. Dow Jones turns negative an Powell's remark about balance sheet at Economic Club of Washington. pic.twitter.com/e6sYstYMbV

— Holger Zschaepitz (@Schuldensuehner) January 10, 2019

That being said, there is very change in bond and commodity markets. I’d like to see market go lower with some energy before initiating some short positions.

Sheila Bair, former FDIC chair, went on CNBC today and talked very greasy about the banks. Essentially, she declared they were not adequately capitalized, needed counter-cyclical capital buffer — something the Fed is not likely to impose at this time.

In true bearshitter fashion, she warned about leveraged loans, capital buffers, ballooning corporate debt, and even retorted to Faber’s suggestion that the banks were better off now than before 2008 as ‘fake news.’

A must watch for all trader, especially perma-bulls

I sold 13 stocks and made money on just about all of them, with UXIN and JD being my biggest winners. Most were small gains, one as small as +0.2%. Often times people stop themselves from booking small gains, believing they’re too small to book, and then later end up taking small losses. Ever notice how fucking stupid that is?

Book the small gains and the large.

I am now 65% cash, waiting once again in the tall grass. Trades will be executed and communicated in real time, inside the hallowed halls of Exodus. I want confirmation of a break lower before shorting. Truth is, I am just as likely to buy stock than to short them. The reasoning for my sales was to HARVEST MY CROPS, regroup, take another look at the market, in order to effectively allocate. While that might seem like a lot of circle jerking for very little benefit, truth is, we’re up against the resistance point of 6,650 that I’ve been targeting, so I am staying true to that.

Markets were down a lot more today, following the best 10 day run in the markets since 2009. Ergo, and this goes without saying, it’s not a terrible idea to book profits here, AND MOVE TO CASH.

That’s right, Bottle Nose — move to cash.

I’m gonna post a video later today of the former FDIC chair talking greasy about stocks. When I see people like that getting bearish, it makes me nervous — because in previous downturns, fuckers like her foreshadowed grim days ahead.

Powell is going to make a speech soon and the market looks okay. But one was never hurt by harvesting his crops. It’s an easy thing to do, so get out there and do it.

Some of you have gone wayward this evening, after gazing into your computer screens and bearing witness to Dow futures down 150. These same people have given up drink for drugs, in the name of avoiding hangovers and calories, and dare stare into the mirror, with their figurine bodies, and call themselves men.

It doesn’t matter what futures are saying tonight, or what the opening tick might be tomorrow morning.

Truth is, I just wanted an excuse to talk shit. Let me tell you what I really think.

I think we’re now first entering the Fagbox — the indelible situation that I forewarned you about — exclaiming 6650 on the NDX was no more or less than a foregone conclusion.

Now that we’re butting up against it and attempting to defy the laws of reason, it’s very likely we might fail at or around these levels, give or take 50 points from here — bechancing a grave concern led to the downside by oil stocks and the fucking barrels they came into this rally with.

My chart.

I created that chart weeks ago and haven’t altered a single line on it. Bear markets are brutal affairs, cruel mistresses and dangerous bedfellows. They’ll give you aids and make sure to ruin your families and cast everyone you love into the poorhouse.

Bottom line: let the rally fail before reversing course. If we’re heading back lower, we’ll retest the lows and there will be ample time to become DRIP Gods again.

About those PPI numbers.

Today's China PPI result showed a much sharper deceleration than expected. Nomura's Lu Ting sees further evidence that the economy is slowing"at a worrying pace."https://t.co/w8TVbZ9Jgu pic.twitter.com/jfe6pi9AgC

— Jeff Black (@Jeffrey_Black) January 10, 2019

It was a fine close. Let it be noted that not only have you exceeded your authority to comment on financial matters, but you also have offended and injured me deeply with your ignorance. This is precisely the type of close one likes to see.

One enjoys the tinder to cast an orange hue just before roasting the flesh of the uninitiated. You’ve never traded in markets like this, because you were born a short while ago, and have zero life experience in bear markets. Let me educate you how this works — FUCKED FACE.

Markets will sashay, even glide, higher for the balance of January. LateFAGS will then Bogart in fast, hoping to catch a quick score, only to be horrifically executed by a fast and sloppy blade.

You’d be wise to refrain from shorting stocks until the charts break lower. That’s all you have to do is wait. Quit trying to anticipate where stocks are going and simply look at them now.

This is the sort of bullshit one should expect from the Fed. Remember this always: it is their job to make stocks go higher. Without a positive wealth effect, pensions get defunded, budgets disjointed, chaos reigns supreme. If you’re shorting stocks and betting on a black swan, just know you’re taking on a low probability trade.

Source: CNBC

“With an increase in the target range at this meeting, the federal funds rate would be at or close to the lower end of the range of estimates of the longer-run neutral interest rate, and participants expressed that recent developments, including the volatility in financial markets and the increased concerns about global growth, made the appropriate extent and timing of future policy firming less clear than earlier,” the meeting summary stated.

The indecision was reflected in rate forecasts among individual members. Officials cut their expected moves this year from four to two, citing a range of concerns about growth and volatility in the financial markets.

“Concerns over escalating trade tensions, global growth prospects, and the sustainability of corporate earnings growth were among the factors that appeared to contribute to a significant drop in U.S. equity prices,” the minutes said.

The statement after the December meeting replaced the phrase “the Committee expects that further gradual increases” would be appropriate, to “judges that some further gradual increases” are coming. Using “judges,” the minutes noted, was a signal to markets of the data-dependency the Fed will employ. Also, “some” was meant to imply a “relatively limited amount” of hikes would be coming.

WTI is +5%. Junk bonds are green, and stocks are ripping to session highs. If I can teach you but one thing it is this: THERE ARE ENDLESS POOLS OF GENIUSES WHO KNEW MORE, BROKE AND DISHEVELED, AT THE BOTTOM OF THE SEA, WHO BET AGAINST PROSPERITY. It’s a hard gamble, and you have to be hard boiled and belligerent to pull it off. You’re better off going with the sheep.

We’re back to BILI-clubbing again. I’d like to see any of you try to stop me. I’ll rip your arms out of your sockets and beat you to death with them.

Look at this chart. LOOK AT IT.

$17, post haste.

The market is probably gonna day-rape a lot of people today, swinging to and fro in blackguardly mannerisms. It will fribble away the portfolio values of the weak and mentally disabled. Men in sloppy cloth getting cleaned for their coin — because they chose to anticipate markets instead of bowing it its grandeur.

My biggest losses and with the most prevalence, occurred after I felt something would happen, instead of actually seeing it being done. In other words, quit thinking you’re special and ahead of the curve. You’re not. That one time you nailed an huge inflection point was luck. If you’re not repeating those wins over and over again, you’re fucking up.

Quit fucking up. Follow the market. It certainly will not follow you, fucked face.

No analysis needed here. I stepped in and bought some UXIN, piece of shit Chinese burrito, down at the lows, at a time when stocks are melting up. Potential upside is YUGE.

Probability of this happening: small.

I accept the risk.