We have gone from 14,700 to 15,700 (6.8%) in 3 weeks. At this pace, we'll be at 19,000 by December 31st and over 20,000 in January and 32,000 at the end of next year! Wow, that is so normal, right?
Of course, the Fed DID put $1Tn into the market yesterday. Actually it was more like $2Tn because they are continuing to put $85Bn PER MONTH ($1Tn per year) into the markets through QE but they also withdrew $1,000,000,000,000 – not just from your savings account – but from every single asset you have, when they devalued the Dollar by 1% yesterday.
That's right, the US Dollar responded to the Fed's complete lack of respect for the money supply by dropping a full point yesterday and now sits at 80.03, down 4% since the Dow began rising 6.8%. Since the Dow is priced in Dollars – doesn't that then mean that the Dow is really only up 2.8% in a steady currency? 14,700 + 2.8% is only 15,111, not 15,677 and 15,111 is STILL below the 5% line. If I'm right, then 15,200 is going to be serious resistance and we can expect the Dow to grind to a halt 89 points from now, at 15,766 so that will be our new shorting target (if they even make it there).
IN PROGRESS
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