But I don't know if I can
Open up enough to let you in
Here come those tears
Here come those tears again
Just walk away - JB
As noted by Dave Fry yesterday:
"This is the kind of stuff market bulls put out which is the amnesia drug to help you forget crappy earnings from important companies and buy stocks. So after the post-Fed Meeting decline the short squeeze to keep January positive was launched. At the same time there was a report per Sen. Charles Schumer that Yellen privately told democrats there would no rate increase soon. That launched buy programs."
And, of course, after a BS rise in the markets on Thursday, we are giving up essentially all of those gains in the Futures (8:15) ahead of the Preliminary Q4 GDP Report, which has NO chance of matching the 5% Q3 Report and may even disappoint those looking for 3.2% growth based on the earnings reports we've seen so far.
In short, the Fed is so terrified of failing our weak bounce line on the S&P (now 2,006), that they feel the need to talk up the market every time it's threatened. Rather than take comfort in the fact that "the Fed has our backs" like most traders seem to – we at PSW are wondering what exactly are they trying to protect us from and, more importantly, what happens to us if they are not up to the task?
As Genesis (the group, not the bible) reminds us "It's an illusion, it's a game or a reflection – of someone else's name" and more importantly, they warn us "Baby, there's a hole in there somewhere." We KNOW there's a hole in there somewhere but we also know the Central Banksters are hiding something and, rather than be encouraged by this and going all in on the markets – we are remaining "Cashy and Cautious" for the 2nd quarter in a row.
8:30 Update: I was going to say "Maybe we're wrong" but screw that, we're not. GDP just came out at 2%, close to 50%…
