Today's heavy nervousness before the FOMC meeting was a real sign that there are no free markets anymore. Valuations don't matter, fundamentals don't matter and of course technicals don't matter. It is pointless to chart before Ben talks. We should all just sit on the sidelines on those days and wait for the storm to pass.
I totally agree....as long as the Fed is buying assets(which leads to stock price inflation)and everyone believes it(signified by margin debt increasing),all other indicators,tools and sentiment numbers become de-energized and ineffective.By all rights...we should have corrected 10-20% based on bullish sentiment alone.The Fed is overwheling anything...FOR NOW.At some point this will end too...margin debt numbers may be the key.That will show when the plug is being pulled on speculation.
ReplyDeleteTaper is there but not large enough. There is still 75B/month flowing into markets. This is just insanity.
ReplyDeleteno one has understood(me included)how much stock valuations have been skewed upward by QE.It s artificial and distorted by a certain unknown amount.Corrections should still occur (when fear of more tapering rears its head)but this is all uncharted and possibly unchartable except to draw out trend lines and follow the market up.
ReplyDelete