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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives
SPY 681.89+0.3%Oct 31 5:00 PM EST
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To: Nevada9999 who wrote (57208)2/10/2014 5:52:18 PM
From: FCom7771 Recommendation

Recommended By
3bar

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Think you have to be real careful looking at long term equity charts and trying to anticipate a meaningful downtown. In my opinion, the FRED plot of the monetary base tells the whole story. The question to ask is whether that chart is likely to turn back down since that capital has fueled the markets rally. I don't see what turns it back. Guess the debt limit not being increased for an extended time frame could cause it - but I really doubt that's in the cards ... How about a big time Fed monetary tightening? Doubt it - can't see the Fed selling bonds when buying bonds nets banks free money. If you haven't figured it out - Fed actions since 2008 have ALL been about buttressing the bankster balance sheet. Why would they stop now?

Seems more likely the monetary base keeps expanding - especially with the new Fed chief. Disgusts me too. It would be interesting to normalize the S&P chart by the monetary base - bet that chart would show a pretty defined down trend ... however you interpret that ... Or normalize it by a genuine inflation index - maybe something put out by Shadowstats .... When considering the timing of a downturn - it seems unwise not to consider the profound monetary base change over the past 5 years.

Like Jackie Gleason used to say - "To the Moon Alice ! " is pretty hard to argue against in the current monetary climate.

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