"In the last days, perilous times shall come. For men shall be lovers of their own selves, covetous, boasters, traitors, heady, high-minded having a form of godliness, but denying the power thereof. Evil men and seducers shall wax worse and worse, deceiving and being deceived."
John Henry Newman
And high amongst those self deceptions is the arrogance to presume that the killing of innocents is somehow justified by the ends, as some form of recompense for other evils done, or as a public statement. This is not justice, nor reform; it is simply murder.
Stocks were shaky on the opens, and then the unprovoked shooting of a soldier keeping guard at the Canadian War Memorial. Oil also moved lower, making traders a little nervous about global growth prospects because of the slackening of demand.
But all in all, this was a very technical day. Stocks had an amazing bounce off support, with the help of the financiers at the Fed, both in terms of words and as some submit the likely purchasing of stock futures at key junctures of the day by the 'Plunge Protection Team.'
This purchasing of stocks in order to avoid a market dislocation has been a portion of US financial policy going back to the days of Reagan, but was made more prominent under the Treasury of Robert Rubin in the Clinton years. That it exists is not a matter of debate. It is titled 'The Exchange Stabilization Fund.' Only their specific actions and motives are open to question.
So what next.
As I said, stocks retraced an amazing run higher to 'back kiss' support, which was prior resistance. It is their next two moves which will be most telling, and I suggest that you watch them closely factoring in the effects of any exogenous events to sift out the character of this market.
Will the recent efforts to inject money and 'confidence' in the markets take hold and become sustainable? Let's see what happens.
Have a pleasant evening.
