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Chaos in the Hourly Chart Bear Market, Fartcall for the Fucuture -June 30, 1974


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HOW TO CONDUCT AN EXPERIMENT.......AN EXERCISE IN CONTROLLED DEMOLITION

The Fed is conducting a bit of an experiment.

What is the experiment you may ask?????

It is letting the Bond market have a bit of freedom to measure 2 things:

1/ How fast interest rates will rise.

2/ How that will impact the stock market.

I.e. its probably quite happy to see stocks sell off 10-20% as a result.

Anything more and it will slam on the breaks and start buying bonds in earnest.

Which will crash the dollar.

Buts that's a story for another day.

 

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They don't care so much about stocks, although they certainly would react if we get a 20% crash. The bond crash will get worse before that happens. I think we're only days from a massive intervention. They have to stop this. There's no workable alternative. 

Here’s The Evidence That The US Treasury is Bailing Out Stricken Primary Dealers

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