Government Intervention - A Daily Occurence
I am not posting any charts, just a quick commentary on a couple of things. Before I get to those things lets discuss fundamentals.
1. Gov't intervention (or rumor thereof) is a daily occurence and has to affect your trading size and trading length and how you manage the trade
2. Earnings are still around daily and claims are coming tomorrow
3. Options expiration is Friday and typically options expiration weeks are up weeks in equities
Technically speaking, the reason I am not posting charts is we are exactly in the same place right now as we were on Monday at the open. Look at your USD currency pairs and the SPX. A lot of chop, some intervention, some intervention rumors and there you have it, SPX is still on its highs.
I don't know what will keep it from breaking out to the upside, I just hope it doesn't happen until Monday...
Overall, I am quite happy with the equities heading towards their earlier year highs. I think it just provides a big trading range and the government intervention just delays the onset of years of stagnant equities (zero growth) and stagnant price pressures. Read: stagflation. I have been calling for this for 2.5 years now and the only reason equities are on their highs is the "can being kicked down the road" intervention/easing is still in play. I do expect unemployment to stay elevated or rise. I do expect traders and investors who pick their spots to do better than the long term investor.
My big hope that governments stop interfering. Think about it. Has the Fed stuck to its mandate of:
1. creating jobs
2. controlling inflation
Intervention in any industry changes the playing field and traders, if you haven't realized it yet, you better now. Pick your locations and trade with a plan on each and every trade.
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