NASDAQ100 Hourly -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Cycle Brackets, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

To continue from the daily report, POMO extension is hitting the MSM now.  If this extension does occur, the message is clear – POMO on, markets up.  POMO off, markets down.  This will continue until the Fed has purchased all the tradeable shares of all the stock exchanges – OR – until the board members of the Fed demand Yellen’s resignation.    Yellen isn’t stupid – a bit arrogant, but not stupid.  Yellen knows what she is doing.  If POMO continues, something more grand is occurring, but you can be sure that whatever is unfolding, it will not be good for you nor I.   In general Santelli is all that counts over at CNBC, but even Rick had trouble handling Peter Schiff at Euro Pacific Capital – a two minute rant – funny.

Click on chart to enlarge NASDAQ100 Hourly Shows No Down Ticks – Yellen Unleashes Uncle POMO On The Markets

NASDAQ100 Daily -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Cycle Brackets, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

So markets are up today because the Fed head punched another $2B or so leveraged US dollars into markets.  In other words, Yellen the market maker was buying.  Yellen the market maker will be buying about the same tomorrow, but the effects should wear off, as per the typical daily POMO cycle, around noon EDT.  Another Yellen backed dump of POMO arrives on Thursday the 23rd.  This should be the second last POMO of October.  Speculation is percolating around a possible extension of POMO into November.  See hourly for details – expect markets to open up and roll over by early afternoon.  Many companies are reporting earnings, but this doesn’t matter (issue zirp bonds, buy back shares, jack EPS, adjust revenue targets, set guidance high and roll back later – lather, rinse, repeat).   Follow Yellen’s POMO and you have all you need – Yellen does the buying until the POMO runs out.

Click on chart to enlarge NASDAQ100 Daily Up About 1.5% On Day One Of Three Day POMO Week – More POMO Tomorrow

NASDAQ100 Hourly -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Cycle Brackets, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

Click on chart to enlarge NASDAQ100 Hourly Cuts Through Bear Channel Resistance – Could See Move To 3860 Before Roll Over

NASDAQ100 Daily -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Cycle Brackets, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

The Fed heads pop up like a carnival game of “whack-a-mole” spewing something and markets take off – again.  Interestingly today, the DAX was up 3.12% on the news that four German Banks are about to fail.  Thanks to Tyler over at Zerohedge for that update.  Failing banks sounds bullish to me and explains why US markets moved higher, right Yellen?  All right.  Enough with the sarcastic comments.  Today’s market move is just another example of the big and irrational swings we are going to see as we head much lower.  Short the bounces and avoid long positions – you may not recover this time around.  These moves are going to get much more volatile – both ways.

Click on chart to enlarge NASDAQ100 Daily Rockets 50 Points In First Five Minutes – Moves 2 More Points For Rest Of Day – Thanks Yellen

NASDAQ100 Weekly -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Cycle Brackets, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

Looks like a  hammer bottom, but we don’t expect much follow through next week.  We expect to see channel support break next week as POMO takes one last run at pumping up markets.  Why does the Fed do this?  The US President appointed Yellen and experts know that market indexes reflect an incumbent’s chance of getting re-elected.  If markets stay up, it is likely that things will stay the same.  If markets tank, it is likely that the US Senate will change hands.   It would be shocking to see Yellen extend POMO – the message would be clear that the Fed is now the newest market maker in the business.  This was suspected in the past, but it would be a blatant confirmation if POMO goes into November.  Yellen’s word would be worthless – similar to that of a cheesy used car salesman – and calls for Yellen to resign would get very loud.

Click on chart to enlarge NASDAQ100 Weekly – Fourth Down Week In A Row – POMO On Monday, Tuesday And Thursday
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