The threatening Fed

With the FOMC announcement containing another threat of an interest rate hike at the December FOMC, the situation is somewhat like late July. First downside target is the sp'2K threshold, and that will no doubt spook a few of the weaker equity bull maniacs.


sp'weekly1b

sp'monthly1b

Summary

It won't take much to attain a net weekly decline.. and that would be my guess right now.
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re: monthly1b.   We're currently net higher by a rather insane 170pts (8.9%). An Oct' close above the key 10MA - currently @ 2050.. looks probable. Any such Friday close >2050 would be a massive bullish signal into next year.


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Looking ahead

Thursday will see the usual weekly jobs, and pending home sales.

Central to the day.. Q3 GDP data (due 8.30am). Market is expecting 1.7% growth..which is a pretty conservative target. Anything much <1.5% would be a viable excuse for equity weakness.
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More fedspeak nonsense

A few words were added to the latest Fed statement.. a few words were taken away. The cheerleaders on clown finance TV were of course obsessing over such things.

To me.. it is all utterly farcical...  but more so... sickening. Savers remain destroyed with such artificially low rates, and there remain ever worse distortions across much of the world capital markets.

Even if rates were to somehow reach 2-3% by 2017, it won't negate much of the damage that has been already been done.

Goodnight from London