Stock Market: The Week Ahead May Prove To Be A Pivotal One, Here's Why. By Gregory Mannarino
In my opinion the Federal Reserve has lost control of the debt market.
What this means to me is we can expect the current rally in bonds to continue. What this also means is stocks are fast reaching a pivotal moment-do they continue to rally along with bonds? Or do they diverge/begin to sell off...
This week several Fed. members will speak, and the markets will move on every word which comes out of their mouths.
The fact that markets are so fixated on Fed. speak says a lot, wouldn't you say?
The markets are 90+% Fed. driven and that is not good. In the days of the free market, it was fundamentals, earnings, and real economic reports which dictated the price action/price discovery of assets. But being that The Fed. has decided to manage the markets by hyper-inflating debt, nothing is real, and there is no longer a free market.
The coming week, in my opinion, has the potential to set the tone for the next several months of market action, and Fed. speakers will be the guiding force.
The continued tech selloff is concerning.
Tech has been the driver for stocks for the last several months, (something which I said would happen and it did), and although a rotation back into tech is certainly possible, the longer it takes for a "rebound" the more skeptical I become.
Moreover, if you recall, in the week prior we had a Friday stock market selloff which was followed by a Monday selloff. This Friday/Monday selloff is unusual (I even did wrote an article and posted a video in which I talked about how this Friday/Monday dynamic is not good). That Friday/Monday selloff dynamic which took place may just be telling us that the next few months may not be not so good for stocks.
What needs to happen.
This week is important status post the Fed. hiking rates, and several things need to happen.
In order for stocks to make a meaningful move higher, we need to see a rotation back into tech, and we need to see less cash move into bonds as well.
We also need to see crude oil and the US dollar stabilize.
What we do not want to see.
We do not want to hear more "Hawkish" speak from The Fed.
We do not want to see the 10yr yield drop.
We do not want to see more US dollar weakness.
We do not want to see crude oil continue to slide.
Check out this interview I just did with "The Maestro." Click here:
Gregory Mannarino
I love this Greg, ".... basically taking away the very soul of what the market does and that is determine fair value. No asset behind it has a price discovering mechanism behind it that is real." Through the Feds "should be" illegal action they have created this unreal, unstable beast that is ready to fall. Thank you Greg for continuing to produce quality content, rich in truth! Thank you sir!
Your logic is always spot on Greg. The Fed is controlling everything. I still can't wrap my mind around central banks buying equities and people aren't screaming from the roof tops. Print money out of thin air and then buy assets with it. That's the greatest con in history.
I gree people are walking around like zombies.
Thanks for the timely update Greg! Wow, 90+% Fed driven... Craaaaaaazy.
Will be tuned in for sure next week. For now, enjoying some awesome weather here in the Netherlands! 💥
They should call one of those debt consolidation companies, and get all their debts put into 1 monthly managable debt. $100 a month for the next 3 million years.
Thank you...
Greg- I Resteemed and voted up my friend. You are the one I listen too. Thanks for all of your input, experience, and knowledge. Take Care.
Great post. I think for stocks to move higher, it is necessary that oil also move higher. Now i will go and watch the interview :)
Super interview, one of the best, i don't know what Harry Dent talking about, he's predicting deflation, but when all other assets pop, everybody will RUN into the "safe heaven".
It's scary when the Federal Reserve starts dictating market movements. And having individual Fed members give talks drives me crazy....they all contradict each other.
Thank you Greg, your lions are ready