The Grand Experiment (1/24/02)
capitalstool.com
The market gapped open on Thursday, was strong through mid day, and spent the rest of the day fighting not to close the gap. The bulls were finally successful at holding on to about half the gains, and keeping the Nasdaq above the gap, thereby setting up the possibility of forming a Flying Turd Formation on the chart. One of Dr. Stool's rare chart patterns, these patterns form when the market gaps up one day, and gaps down the next. Whether that will happen or not, we'll know in the morning. The Nasdaq 100 Fucutures did gap down on the opening of the after hours session, but a lot can happen in 15 hours.
By the end of the day the Dow managed to hold on to a gain of 65 at 9796, after a mid day high of 9856. The Nas sold of from a high of 1960, to close at 1942.58, up 20, and the SPX was only able to hang on to a gain of 3.97, closing at 1132.15, after hitting 1139.50 earlier. It was a see saw battle all day, and although the end result made it look like the bulls won this one, intraday oscillators were flashing sell signals as the day drew to a close. The futures have done nothing to contradict that so far in the evening session.
FBI* Director Algae Greenspew was out cheerleading the market. It's really quite a spectacle watching the Fed jump through rings of fire in this experimental circus act of managing the markets. I'm old enough to remember when a Fed Chairman never said anything. Even if the old Fed didn't have a clue either, the unrevealed policy at least carried the appearance of dignity. This one doesn't, it loudly advertises that the fix is in, and it loudly advertises its incompetence to some of us. Still the portfolio sphincters who make decisions about what to do with your money are even dumber, and they will believe anything that suggests stocks will go up. When Greenweenie's comments a couple weeks ago were "misinterpreted" by the market- simple, just be a little more cheerful and the markets will be happier. Ah the power of positive thinking.
From my perspective the market itself will tell us everything we need to know about the market. We don't need a FEED chairman to make happy talk to tell us whether something's rotten or not. And there's nothing more rotten than a central bank blatantly manipulating the market, and perpetuating a mania. One of these days that grand experiment is going to blow up the laboratory, and all the experimental subjects with it.
*Financial Bubble Inc. |
