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One Bank, One Intervention, is One Thing


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Fed policy reversal is another thing altogether. 

Rules Number One and Two are immutable and eternal. 

Don't Fight the Fed. 

The trend is your friend. 

Here's the ES, S&P 24 hour fugutures as of 9:50 AM in Paris and Frankfart, 8:50 in Londone, and 3:50 in New Yak. US traders will wake up to a surprise, except those on the west coast who stayed up late. 

z2pn1

Here's a question. What does a megaphone pattern at a low mean? I can't recall seeing that before. They're common on the way up and at tops of course. But at lows? If you remember one, post a chart. 

Many tanks!

Meanwhile, back at the big picture:

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The BoE intervention on British Gilt, not to be confused with Catholic guilt or Jewish guilt, ran into sellers at 97.25 on their fugutures. The hourly chart is worth watching. The 97.50-98.50 gap remains unfilled. Something to watch this morning. 

z2ppe

Needless to say, a failure to clear this would require coordinated multinational intervention when this collapse ignites contagion. When the margin man comes calling, you sell whatever is in the kitchen sink. That includes particularly US Treasuries and US stocks. Watch the 4% level on the 10 year. In the short run, it should hold, but if not, I'd look for 4.40 fast. 

z2pvp

Markets Face Catastrophe as Dealers Mitigate Too Little Too Late

 

 

 

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No doubt the BoE is far far less important and influentual than the FED. The attack by Soros on the GBP in 1992 is a good exsmple: There were almost no global implications, it was more or less an isolated Britain thing.

Regarding the 1 hour Gilt chart:

See, if they really would have this under full control they would have made an gap up this morning to paint an island bottom, THAT would have been a powerfull sign.

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5 hours ago, DrStool said:

The BoE intervention on British Gilt, not to be confused with Catholic guilt or Jewish guilt, ran into sellers at 97.25 on their fugutures. The hourly chart is worth watching. The 97.50-98.50 gap remains unfilled. Something to watch this morning. 

z2ppe

Needless to say, a failure to clear this would require coordinated multinational intervention when this collapse ignites contagion. When the margin man comes calling, you sell whatever is in the kitchen sink. That includes particularly US Treasuries and US stocks. Watch the 4% level on the 10 year. In the short run, it should hold, but if not, I'd look for 4.40 fast. 

z2pvp

Markets Face Catastrophe as Dealers Mitigate Too Little Too Late

 

 

 

Market is feeling a little guilty today.......sorry just had to say it...

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Some perspective from the ES 5 hour bars. 

tvc_0d90d5c8465f903a2ab3cce0fbc726ad.png

Note that yesterday's rally topped out exactly at the June July lows. Likewise they're holding now at the mid June low of lows. If it gives, big downtrending sport in the 3570 range. Then bakoom! 

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