SP 500 and NDX Futures Daily Charts - The Next Big Move Is the One To Watch

The spec dip buyers must have been piling on yesterday, and after this morning's better than expected unemployment claims number.  Because stocks got clocked, and hard, back down through near support.

It is going to take a another down move with a solid break of 1800 to get my bearish juices flowing, because for now I think that they are just playing.

The algos are just riding around, playing tag with each other, and killing any human beings that happen to wander into the markets.

Have a pleasant evening.

 

Nomi Prins - All the President's Bankers: The Hidden Alliances That Drive American Power

This is from the book summary at Amazon.com:

"Culled from original presidential archival documents, All the Presidents’ Bankers delivers an explosive account of the hundred-year interdependence between the White House and Wall Street that transcends a simple analysis of money driving politics—or greed driving bankers.

Prins ushers us into the intimate world of exclusive clubs, vacation spots, and Ivy League universities that binds presidents and financiers. She unravels the multi-generational blood, intermarriage, and protégé relationships that have confined national influence to a privileged cluster of people. These families and individuals recycle their power through elected office and private channels in Washington, DC...

Prins divulges how, through the Cold War and Vietnam era, presidents and bankers pushed America’s superpower status and expansion abroad, while promoting broadly democratic values and social welfare at home. But from the 1970s, Wall Street’s rush to secure Middle East oil profits altered the nature of political-financial alliances. Bankers’ profit motive trumped heritage and allegiance to public service, while presidents lost control over the economy—as was dramatically evident in the financial crisis of 2008."

Gold Daily and Silver Weekly Charts - Who or What Will Let the Dawg Out?

The yellow dawg (gold) is straining at the leash.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Fed Minutes and Scalded Cat Trades

The Fed minutes came out at 2 PM, and their dovish tone had stocks soaring higher, running the bears out of the new wash cycle.

Earnings will now start playing a more important role in market movements, but as I noted in the intraday commentary the HFT algos are driving a significant portion of daily stock volume. So the trade has a very technical tinge.

I hear that Goldman says that there is a 67% chance of a ten percent correction in stocks over next year.

I think if we get the right even, that ten percent is going to seem like a blip, unless the Fed pulls out all the stops to save their friends.

Bank earnings start coming in on Friday.

Have a pleasant evening.