Wednesday, February 2, 2011

View from 40,000 feet

All the world markets rallied along with the US.  

The US equities "ramp job" was not just a POMO induced thing.  In fact POMO didn't really "add money" to the system, they mostly bought up bonds, preventing an implosion in the bond market and masking the effect of less foreign purchases.

This was a wave, not JUST manipulation.   Manipulation has always been part of the market, in the 1900's early on, if you look at the daily charts, the swings were even wilder than of late.  

As a wave, it should respond to wave counts and Fibonacci levels.  
Although have no doubt, Dabama can instruct GS to buy the futures and they will.

In fact 60% to 80% of the equities rise is attributed to first day of month and Monday gap ups....i.e. futures.

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Insightful and Useful Comment!