...don't worry, everyone, the wizards of Wall Street are currently positioning themselves for one last melt-up before the whole thing goes down, so there may yet be time to squeeze another few meaningless points out of this stock market rally.
...do the powers that be “want” the market to go to 50K? What would be the point of that? few that I can really see. Sure, it will make the top 5% a whole lot of money, but for the tens of millions that don’t have any way to own stocks…it won’t do a thing for them.
Most of you probably know what this past week was like in market land. Enormous swings up and down. The NASDAQ losing 2K points from its high just 14 sessions ago. Entire indexes giving up all their 2021 gains.
Shortly after the open on Friday, things went south again. The NASDAQ peeled off another 350 points, the DOW plunged red by another 200+ the S&P was blood red by 40. It was another slaughter day. Until….
What’s it all mean? Are we at an inflection point in market land now, and the big bull market is over? Probably not just yet. That said, Quad hangovers can indeed extend several days, as traders reposition and rethink their futures roll outs. But make no mistake, the Fed’s statements, along with Bullard’s opinion, has changed the narrative some. We might see a much more volatile next two weeks as they try and square up all of this. Caution is warranted.