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Strategies & Market Trends : Point and Figure Charting

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calgarylady

roguedolphin

To: rdkflorida2 who wrote (33937)	8/20/2020 8:53:54 AM
From: Winfastorlose	2 Recommendations Read Replies (1) of 34822

It all hinges on the Fed's loan program to primary dealers. As I predicted back in March with the initiation of this six month program, it was a roundabout or indirect way of Fed funding for the stock market and a bottom would be in place as soon as the program went into effect. (that is in fact how it all transpired). . The Fed is currently loaning to primary dealers the purchase price of any stocks they buy and hold in inventory. The dealers have been trying to suck in buyers at ever higher prices but it really isn't working well, so they move the indices higher by buying the same FAANG stocks over and over again and masking it through dark pool trading. . Professionals are only about 30% invested right now, so that 5 trillion dollar pile of money they are holding, remains on the sidelines. If the Fed has already planned to extend the program, then there would be no real need to take the market down unless the dealers can get rid of that inventory, but if the matter is still up in the air and the program is feared to expire in the middle of Sept as planned, then this market is going to get crushed for two reasons. First is so the dealers do not get left holding the bag and the second is that by crushing the market, it might force the Fed to renew the program. which once again, is set to expire in the middle of Sept. Such a development would also be favored politically.

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