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World Stock Markets Trading Discussion - Scattered shots


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big.chart?nosettings=1&symb=AU%3AXAO&uf=

http://bigcharts.mar...com/default.asp

 

 

Another minor down day with All Ords closing -0.2%.  Sectors ranged from Miners +1.3% down to Healthcare -1.2%.

Over in Asia, China and Hong Kong -0.5%, Japan +0.5%, India currently -0.4%.


 

UK/Europe not getting excited: FTSE and DAX flat, CAC +0.2%.

 

 

 

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big.chart?nosettings=1&symb=DX%3ADAX&uf=

 

 

big.chart?nosettings=1&symb=FR%3APX1&uf=

 

http://bigcharts.mar...com/default.asp

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I fail to see how liquidity is bearish

 

it's bullish

 

ath's in russell

 

all other avg's to follow

 

the higher rates go, the higher equities go

 

Wishing that liquidity is bullish doesn't make it so.  The Fed is pulling $30 billion per month out of the system now. Goes to $40 billion in July. $50 billion in  October. The Treasury did a $133 billion paydown in mid April but returned to net borrowing at the end of the month.  Only a brutal selloff in bonds sent enough cash to foment a stock rally, but even  that's out of gas over the past 4 days. The Treasury will now pound the market with an average of $100 billion per month in  net new supply as the Fed pulls money out at the same time. It doesn't get more bearish than that. 

 

This is how bear markets start, at least since I've been watching them over the past 50 years. The Fed pulls the punchbowl and the market eventually succumbs.   This reminds me of 1973. It had rally after rally but could never breach the highs.  The big breakdown came in 1974.  

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