04 November 2015

SP 500 and NDX Futures Daily Charts - Bipolar Interest Rate Psychosis

The markets cannot quite seem to know what to do and where to go these days. Perhaps that is what happens when they diverge from reality, and begin to live in the shadows of the bipolar Federal Reserve that one day sees an improving economy demanding higher interest rates, and the next a slump that opens the door to draconian regime of negative interest rates.

I know the Fed's game is to keep the markets guessing. The problem with this is that it is hard to tell what these jokers will do next, because the thought leaders of this glorious republic are caught in a massive credibility trap in which black is white, war is peace.

Oh well, tomorrow is still another day. And we have the drama of the Non-Farm Payrolls ahead of us, sure to be seasoned with the numerical slant du jour.

Have a pleasant evening.