If the dollar keeps marching higher, you'll see Twist 2. I doubt the other CB's will dial back their QE's if Grandma asks them to.
chatter regarding Draghi more QE to help the European auto companies damage happing today
At these levels, it's becoming a coin toss...I imagine some Fed members are feeling pretty humiliated at this point...Nasdaq sitting right on those all time highs and the message was they couldn't raise due to market "turbulence"...
you know and I know this is all going to end very badly...just a matter of when.
I don't think that there is an "easy short" in this market, especially with the perpetual risk in overnight markets...spitting distance to yearly highs in SPX/ES makes it that much trickier.
Yeah, I got out at 2pm. Made 2% with leverage, so not a big deal.
https://www.ici.org/research/stats/retirement/ret_15_q2Main problem with this market is lack of participation from "stags", bag holders and long term buy and holds. This means that if the market dives, the only losers are big money, corps and funds. Market doubtful to ever drop in a significant way without bagholders....just controlled corrections when consensus belief correction is needed as we just saw and again 2011 and so on. This is all allowed because one can keep borrowing for free to invest in equity and cause melt ups.
This may change as more and more well known apps start to appear as IPOs. Until now, most (90%) companies from the dot com bubble were failures either short term or longer term. GOOG not even a dot com era company and apple not a dot com at all. Microsoft and Cisco from early 1990s. Amazon, Yahoo and ebay are the very few still alive and maybe a few travel dot coms.
For fairly large market participation by average investors there needs to be a series of new app style silicon valley IPOs from companies younger people have heard of that are successful...bringing us away from the older PC or dot com dynamic. This is why biotech has been chased for 8 years higher now....nothing else out there. Most average younger investors probably don't relate enough to invest in biotechs. Without a next generation of investors (global investors including Asia) the game really is over...just pros trading against each other (might as well flip houses or buy a Qdoba franchise and you can still buy and hold SPX while you do it)