Precisely, the sentiment is so bearish, even a little ray
of hope will spark a major rally. However, we are witnessing
distressed selling to pay debt. No, I am not talking new
highs for the stock market here, just a rally to at least
50 MA, more likely 200 MA. If it does happen, then this
will be a major rally from here. -g-
A catalyst? Fed NOT paying interest on reserves anymore because
of ZIRP, so the money sitting at the Fed will come out. It's
coming out. This is power money in credit markets. Basically,
the same banks that shorted everything will now buy assets cheap
as J6P panics.
While I am not a conspiracy theorist, there is a number
of highly suspicious activies.
One is pushing for elimination of curbs in June/July 2007.
Another one is elimination of uptick on October, 26, 2008
that went into effect 2 weeks later, exactly when the
bear market started.
Yet another one is the Fed paying interest on reserves, causing
the melt.
Why? Someone powerful enough to push these changes through
definitely shorted the Hell out of these markets. When do
they cover? |
