There Was a Massive $15.065 Billion in Fed Credit (Quantitative Easing) Today
There was a massive $15.065 Billion in Fed Credit (Quantitative Easing) today 12-30-09, see http://bit.ly/wQNYC
Given the massive amount of Fed Credit (Quantitative Easing) in recent days, weeks, and months one simply can't fight Bubbles Bernanke and the Fed.
Follow me on Twitter, see http://twitter.com/tradethecycles.
SPX (S & P 500, http://bit.ly/i0nsT) has a bearish daily candle and a bearish two day double top yesterday 12-29 and 12-28-09, see http://bit.ly/i0nsT
However, the five day SPX vs Lead Indicator Walmart (WMT) chart at http://bit.ly/4t6GS9 is very bullish, since WMT's leading to the upside by +1.00% to +1.99%.
SPX's (S & P 500, http://bit.ly/i0nsT) Short Term Upcycle since Friday 12-18-09 is peaking/peaked, see the five day intraday candlestick chart at http://bit.ly/3qGxf3:
Exxon Mobil (XOM), by far the most heavily weighted SPX component (3.11%), has a bearish breakaway gap and an ugly chart, see http://bit.ly/6Dr79y
Get ready for the (short term bearish now) XOM (Exxon Mobil) Lead Indicator, see http://bit.ly/8wiAN2
SPX's (S & P 500, http://bit.ly/i0nsT) pattern of doing a brief pop very early on followed by a fizzle nearly EVERY DAY continues (probably the big boys/program traders bidding the market up very early every day, then they dump it on the lemmings), see the five day intraday candlestick day chart http://bit.ly/3qGxf3
Massive Quantitative Easing in recent months, liquidity injected into the financial system, accounts for market strength recently.
A factor recently/now is that Fed Credit rose a substantial +$23.723 Billion in the five day period ending 12-23-09 (Called "Quantitative Easing" when Fed Credit increases, which is a fancy way of saying that liquidity is being injected into the financial system/markets, which is obviously an inflationary easy money policy), which was/is a bullish indication, see http://bit.ly/Ys2ds..
A factor recently/now is that Fed Credit rose a substantial +$22.764 Billion in the five day period ending 12-16-09, which was/is a bullish indication.
Fed Credit rose a massive +$75.680 Billion in the five day period ending 11-18-09. This was another successful attempt by Space Shuttle Bernanke to prop up the market for a while.
Keep in mind that 5%+ follow through must occur (for a major upcycle sell signal), after breaking the uptrend line since 3-6-09, before the Trade the Cycles system indicates that SPX has very likely peaked.
Early tomorrow it looks like SPX (S & P 500, http://bit.ly/i0nsT) will probably be firm (there's a brief pop nearly every session very early on, then FIZZLE), since the intraday candlestick chart looks bullish, see the intraday candlestick chart at http://bit.ly/12SpXH,
It's not a coincidence that an SPX (S & P 500, http://bit.ly/i0nsT) session cycle low occurred on 12-28-09 (today SPX peaked at 1126.42, very soon after filling the 1126.19 upside gap from the open; yesterday SPX bottomed, nearly a session cycle low, shortly after filling the 1127.78 downside gap from the open, then bounced most of the remainder of the session) shortly after filling the 1126.48 downside gap from the open, see the five day intraday candlestick chart at http://bit.ly/3qGxf3: Gaps have a strong tendency to provide a trading roadmap.
It's not a coincidence that an SPX session cycle low occurred at 1116.00 on 12-23-09, very soon after filling the 1118.02 downside gap from the open, see the five day intraday candlestick chart at http://bit.ly/3qGxf3: Gaps have a strong tendency to provide a trading roadmap.
Gap/magnets to keep in mind tomorrow are 12-24's downside gap at 1120.59, 12-22's downside gap at 1114.05 from the open, 12-21's downside gap at 1102.47 from the open, and, any gap that might be created at tomorrow's open.
It's no coincidence that SPX (S & P 500, http://bit.ly/i0nsT) started to roll over dramatically on 12-21 soon after filling the upside gap/magnet at 1109.18 from 12-17-09's open, see the five day intraday candlestick chart at http://bit.ly/3qGxf3:. 12-21's strength was basically just a brief gap filling spike. Much of the time SPX is simply engaged in gap filling action.
SPX (S & P 500, http://bit.ly/i0nsT) filled two gaps/magnets on Thursday 12-17-09, the 1107.93 downside gap from 12-16-09's open, and, the 1095.95 downside gap from 12-10-09's open (1095.88 session cycle low, once again a session cycle low or cycle high occurred very soon after a gap got filled), see the daily candlestick chart http://bit.ly/i0nsT.
SPX (S & P 500, http://bit.ly/i0nsT) has another downside gap/magnet at 1069.30 (after 1120.59, 1114.05 and 1102.47), see the five day intraday candlestick day chart at http://bit.ly/3qGxf3,. 1046.50, 1025.21, and 1016.40 are the downside gaps after that.
SPX (S & P 500, http://bit.ly/i0nsT) volume was only 2.493 billion shares on 12-23-09 (2.849 billion shares on 12-22-09, 3.360 billion shares on 12-21-09) vs the 60 day EMA at 3.987 billion shares, which is a bearish indication, because, the big money wasn't chasing modest strength in a meaningful way. The anemic/very low volume is bullish, in the sense that rarely will an important cycle high occur on anemic or even average volume. Usually, an important cycle high will be accompanied/"confirmed" by a major volume spike.
The five day SPX vs Lead Indicator Walmart (WMT) chart at http://bit.ly/4t6GS9 is very bullish, since WMT's leading to the upside by +1.00% to +1.99%. For the five day intraday broad market Walmart (WMT) Lead Indicator that includes HUI for gold bugs, see http://bit.ly/5zScR
The intraday broad market Walmart (WMT) Lead Indicator is/closed at modestly bullish (+0.25% to +0.49%) today, see http://bit.ly/88OBwn.
The five day intraday SPX Wall of Worry (SPX vs VIX) crashed since early Friday 12-18-09 (VIX doesn't appear in the chart in recent days), which is an extremely bearish indication, because, it's a huge rise in complacency, see http://bit.ly/vryF4
The intraday SPX Wall of Worry (SPX vs VIX) is not available, see http://bit.ly/UTZwc
VIX was down -0.25% vs SPX up +0.02% today, which is a slightly bearish indication for early Thursday 12-31-09, because, it's a slight +0.23% rise in complacency/-0.23% decline in the SPX Wall of Worry (SPX vs VIX) today, so, slight weakness is likely very early on Thursday.
Market breadth closed at mixed today (NYSE up vs down volume is/appears to be correct), which is a bearish indication for early Thursday, see http://bit.ly/lPIyW. Cycles/Elliott Wave patterns/gaps are the primary considerations.
The six month broad market Walmart (WMT) Lead Indicator is super bearish, see http://bit.ly/nCMaM SPX (S & P 500, http://bit.ly/i0nsT)/the market and nearly all sectors, stocks, and commodities (like the gold and energy sectors) are likely to get savaged over the next 6 to 12 months.
Also, the three month SPX (S & P 500) Wall of Worry chart is very bearish (keep in mind that it's basically a lead indicator), see http://finance.yahoo.com/q/ta?s=%5EGSPC&t=3m&l=off&z=l&q=c&p=&a=p12,p12,fs,p12,fs,w14&c=%5Evix
SPX (S & P 500, http://bit.ly/i0nsT) has been extremely flat the past month+, see http://bit.ly/i0nsT, which looks like important peaking action; the Major Upcycle since 3-6-09 is probably peaking. SPX has made very little upside progress in recent weeks, it has rolled over dramatically.
Much of the time SPX is simply engaged in gap filling action. When a gap/magnet gets filled, look for a session cycle high or a session cycle low to probably occur shortly thereafter (timewise and usually also pricewise). We've seen many times in the past few weeks that a session cycle high or low has occurred very soon after a gap got filled.
Often important and even not so important cycle highs or lows occur shortly after (both timewise and pricewise) gap filling action is completed.
Nothing discussed on this Blog is a recommendation, or, should be construed as investment advice.
A factor recently/now is that Fed Credit rose a substantial +$23.723 Billion in the five day period ending 12-23-09, which was/is a bullish indication, see http://bit.ly/Ys2ds..
Fed Credit rose a substantial +$22.764 Billion in the five day period ending 12-16-09, which is/was a bullish indication, see http://bit.ly/Ys2ds.
Fed Credit fell a substantial -$19.268 Billion in the five day period ending 12-9-09, which was a bearish indication, see http://bit.ly/Ys2ds.
Fed Credit contracted a significant -$2.759 Billion in the five day period ending 12-2-09, see http://bit.ly/Ys2ds
Fed Credit fell a significant -$1.552 Billion in the five day period ending 11-25-09, see http://bit.ly/Ys2ds.
Fed Credit rose a massive $75.680 Billion in the five day period ending 11-18-09. This was another successful attempt by Space Shuttle Bernanke to prop up the market for a while.
NDX (NASDAQ 100) looks like it's peaking (major upcycle that began in November 2008), see http://bit.ly/73BXOt
The precious metals sector appears to/might have finally peaked in early December 2009, see the Blog post from 12-19-09 at http://bit.ly/6Kl4GQ.
As discussed previously, SPX (S & P 500, http://bit.ly/i0nsT) is heavily market cap weighted, with 4% of the components (20) accounting for nearly 33% of the movement, and, with less than 10% of the components (47) accounting for slightly over 50% of the movement.
Much of the SPX (S & P 500, http://bit.ly/i0nsT) strength in recent months has been due to a relatively small number of large cap giants like XOM/Exxon (accounts for over 3% of SPX's movements, which is by far the largest weighting) and GOOG/Google doing well.
Chart one at http://bit.ly/18T7lw shows SPX's (S & P 500, http://bit.ly/i0nsT) Elliott Wave count since 3-6-09, which suggests that the Major Intermediate Term Upcycle since 3-6-09 is/was peaking.
SPX (S & P 500) has been in a Cyclical Bear Market since 10-11-07, NDX (NASDAQ 100) has been in a Cyclical Bear Market since very late October 2007, and, RUT (Russell 2000) has been in a Cyclical Bear Market since July 2007.
My original Trade the Cycles system uses the reliable Elliott Wave patterns (see the Trade the Cycles charts at http://www.joefrocks.com/GoldStockCharts.html) and maps them to cycles of various timeframes (an Elliott Wave is either an upcycle or a downcycle), from very short term (hours/days), short term (days/weeks), monthly (4-7 weeks), minor intermediate term (2-3 months), major intermediate term (3-12 months), long term (1 to 2 years), Cyclical Bull/Bear Market (6 months to 7 years, yes, a bull/bear can be relatively brief), Secular Bull/Bear Market (8-20+ years).
Gaps are very important also, since most gaps get filled and they often provide insight into when cycle highs/lows will occur.
.......http://www.JoeFRocks.com/
NEM XAU HUI
Given the massive amount of Fed Credit (Quantitative Easing) in recent days, weeks, and months one simply can't fight Bubbles Bernanke and the Fed.
Follow me on Twitter, see http://twitter.com/tradethecycles.
SPX (S & P 500, http://bit.ly/i0nsT) has a bearish daily candle and a bearish two day double top yesterday 12-29 and 12-28-09, see http://bit.ly/i0nsT
However, the five day SPX vs Lead Indicator Walmart (WMT) chart at http://bit.ly/4t6GS9 is very bullish, since WMT's leading to the upside by +1.00% to +1.99%.
SPX's (S & P 500, http://bit.ly/i0nsT) Short Term Upcycle since Friday 12-18-09 is peaking/peaked, see the five day intraday candlestick chart at http://bit.ly/3qGxf3:
Exxon Mobil (XOM), by far the most heavily weighted SPX component (3.11%), has a bearish breakaway gap and an ugly chart, see http://bit.ly/6Dr79y
Get ready for the (short term bearish now) XOM (Exxon Mobil) Lead Indicator, see http://bit.ly/8wiAN2
SPX's (S & P 500, http://bit.ly/i0nsT) pattern of doing a brief pop very early on followed by a fizzle nearly EVERY DAY continues (probably the big boys/program traders bidding the market up very early every day, then they dump it on the lemmings), see the five day intraday candlestick day chart http://bit.ly/3qGxf3
Massive Quantitative Easing in recent months, liquidity injected into the financial system, accounts for market strength recently.
A factor recently/now is that Fed Credit rose a substantial +$23.723 Billion in the five day period ending 12-23-09 (Called "Quantitative Easing" when Fed Credit increases, which is a fancy way of saying that liquidity is being injected into the financial system/markets, which is obviously an inflationary easy money policy), which was/is a bullish indication, see http://bit.ly/Ys2ds..
A factor recently/now is that Fed Credit rose a substantial +$22.764 Billion in the five day period ending 12-16-09, which was/is a bullish indication.
Fed Credit rose a massive +$75.680 Billion in the five day period ending 11-18-09. This was another successful attempt by Space Shuttle Bernanke to prop up the market for a while.
Keep in mind that 5%+ follow through must occur (for a major upcycle sell signal), after breaking the uptrend line since 3-6-09, before the Trade the Cycles system indicates that SPX has very likely peaked.
Early tomorrow it looks like SPX (S & P 500, http://bit.ly/i0nsT) will probably be firm (there's a brief pop nearly every session very early on, then FIZZLE), since the intraday candlestick chart looks bullish, see the intraday candlestick chart at http://bit.ly/12SpXH,
It's not a coincidence that an SPX (S & P 500, http://bit.ly/i0nsT) session cycle low occurred on 12-28-09 (today SPX peaked at 1126.42, very soon after filling the 1126.19 upside gap from the open; yesterday SPX bottomed, nearly a session cycle low, shortly after filling the 1127.78 downside gap from the open, then bounced most of the remainder of the session) shortly after filling the 1126.48 downside gap from the open, see the five day intraday candlestick chart at http://bit.ly/3qGxf3: Gaps have a strong tendency to provide a trading roadmap.
It's not a coincidence that an SPX session cycle low occurred at 1116.00 on 12-23-09, very soon after filling the 1118.02 downside gap from the open, see the five day intraday candlestick chart at http://bit.ly/3qGxf3: Gaps have a strong tendency to provide a trading roadmap.
Gap/magnets to keep in mind tomorrow are 12-24's downside gap at 1120.59, 12-22's downside gap at 1114.05 from the open, 12-21's downside gap at 1102.47 from the open, and, any gap that might be created at tomorrow's open.
It's no coincidence that SPX (S & P 500, http://bit.ly/i0nsT) started to roll over dramatically on 12-21 soon after filling the upside gap/magnet at 1109.18 from 12-17-09's open, see the five day intraday candlestick chart at http://bit.ly/3qGxf3:. 12-21's strength was basically just a brief gap filling spike. Much of the time SPX is simply engaged in gap filling action.
SPX (S & P 500, http://bit.ly/i0nsT) filled two gaps/magnets on Thursday 12-17-09, the 1107.93 downside gap from 12-16-09's open, and, the 1095.95 downside gap from 12-10-09's open (1095.88 session cycle low, once again a session cycle low or cycle high occurred very soon after a gap got filled), see the daily candlestick chart http://bit.ly/i0nsT.
SPX (S & P 500, http://bit.ly/i0nsT) has another downside gap/magnet at 1069.30 (after 1120.59, 1114.05 and 1102.47), see the five day intraday candlestick day chart at http://bit.ly/3qGxf3,. 1046.50, 1025.21, and 1016.40 are the downside gaps after that.
SPX (S & P 500, http://bit.ly/i0nsT) volume was only 2.493 billion shares on 12-23-09 (2.849 billion shares on 12-22-09, 3.360 billion shares on 12-21-09) vs the 60 day EMA at 3.987 billion shares, which is a bearish indication, because, the big money wasn't chasing modest strength in a meaningful way. The anemic/very low volume is bullish, in the sense that rarely will an important cycle high occur on anemic or even average volume. Usually, an important cycle high will be accompanied/"confirmed" by a major volume spike.
The five day SPX vs Lead Indicator Walmart (WMT) chart at http://bit.ly/4t6GS9 is very bullish, since WMT's leading to the upside by +1.00% to +1.99%. For the five day intraday broad market Walmart (WMT) Lead Indicator that includes HUI for gold bugs, see http://bit.ly/5zScR
The intraday broad market Walmart (WMT) Lead Indicator is/closed at modestly bullish (+0.25% to +0.49%) today, see http://bit.ly/88OBwn.
The five day intraday SPX Wall of Worry (SPX vs VIX) crashed since early Friday 12-18-09 (VIX doesn't appear in the chart in recent days), which is an extremely bearish indication, because, it's a huge rise in complacency, see http://bit.ly/vryF4
The intraday SPX Wall of Worry (SPX vs VIX) is not available, see http://bit.ly/UTZwc
VIX was down -0.25% vs SPX up +0.02% today, which is a slightly bearish indication for early Thursday 12-31-09, because, it's a slight +0.23% rise in complacency/-0.23% decline in the SPX Wall of Worry (SPX vs VIX) today, so, slight weakness is likely very early on Thursday.
Market breadth closed at mixed today (NYSE up vs down volume is/appears to be correct), which is a bearish indication for early Thursday, see http://bit.ly/lPIyW. Cycles/Elliott Wave patterns/gaps are the primary considerations.
The six month broad market Walmart (WMT) Lead Indicator is super bearish, see http://bit.ly/nCMaM SPX (S & P 500, http://bit.ly/i0nsT)/the market and nearly all sectors, stocks, and commodities (like the gold and energy sectors) are likely to get savaged over the next 6 to 12 months.
Also, the three month SPX (S & P 500) Wall of Worry chart is very bearish (keep in mind that it's basically a lead indicator), see http://finance.yahoo.com/q/ta?s=%5EGSPC&t=3m&l=off&z=l&q=c&p=&a=p12,p12,fs,p12,fs,w14&c=%5Evix
SPX (S & P 500, http://bit.ly/i0nsT) has been extremely flat the past month+, see http://bit.ly/i0nsT, which looks like important peaking action; the Major Upcycle since 3-6-09 is probably peaking. SPX has made very little upside progress in recent weeks, it has rolled over dramatically.
Much of the time SPX is simply engaged in gap filling action. When a gap/magnet gets filled, look for a session cycle high or a session cycle low to probably occur shortly thereafter (timewise and usually also pricewise). We've seen many times in the past few weeks that a session cycle high or low has occurred very soon after a gap got filled.
Often important and even not so important cycle highs or lows occur shortly after (both timewise and pricewise) gap filling action is completed.
Nothing discussed on this Blog is a recommendation, or, should be construed as investment advice.
A factor recently/now is that Fed Credit rose a substantial +$23.723 Billion in the five day period ending 12-23-09, which was/is a bullish indication, see http://bit.ly/Ys2ds..
Fed Credit rose a substantial +$22.764 Billion in the five day period ending 12-16-09, which is/was a bullish indication, see http://bit.ly/Ys2ds.
Fed Credit fell a substantial -$19.268 Billion in the five day period ending 12-9-09, which was a bearish indication, see http://bit.ly/Ys2ds.
Fed Credit contracted a significant -$2.759 Billion in the five day period ending 12-2-09, see http://bit.ly/Ys2ds
Fed Credit fell a significant -$1.552 Billion in the five day period ending 11-25-09, see http://bit.ly/Ys2ds.
Fed Credit rose a massive $75.680 Billion in the five day period ending 11-18-09. This was another successful attempt by Space Shuttle Bernanke to prop up the market for a while.
NDX (NASDAQ 100) looks like it's peaking (major upcycle that began in November 2008), see http://bit.ly/73BXOt
The precious metals sector appears to/might have finally peaked in early December 2009, see the Blog post from 12-19-09 at http://bit.ly/6Kl4GQ.
As discussed previously, SPX (S & P 500, http://bit.ly/i0nsT) is heavily market cap weighted, with 4% of the components (20) accounting for nearly 33% of the movement, and, with less than 10% of the components (47) accounting for slightly over 50% of the movement.
Much of the SPX (S & P 500, http://bit.ly/i0nsT) strength in recent months has been due to a relatively small number of large cap giants like XOM/Exxon (accounts for over 3% of SPX's movements, which is by far the largest weighting) and GOOG/Google doing well.
Chart one at http://bit.ly/18T7lw shows SPX's (S & P 500, http://bit.ly/i0nsT) Elliott Wave count since 3-6-09, which suggests that the Major Intermediate Term Upcycle since 3-6-09 is/was peaking.
SPX (S & P 500) has been in a Cyclical Bear Market since 10-11-07, NDX (NASDAQ 100) has been in a Cyclical Bear Market since very late October 2007, and, RUT (Russell 2000) has been in a Cyclical Bear Market since July 2007.
My original Trade the Cycles system uses the reliable Elliott Wave patterns (see the Trade the Cycles charts at http://www.joefrocks.com/GoldStockCharts.html) and maps them to cycles of various timeframes (an Elliott Wave is either an upcycle or a downcycle), from very short term (hours/days), short term (days/weeks), monthly (4-7 weeks), minor intermediate term (2-3 months), major intermediate term (3-12 months), long term (1 to 2 years), Cyclical Bull/Bear Market (6 months to 7 years, yes, a bull/bear can be relatively brief), Secular Bull/Bear Market (8-20+ years).
Gaps are very important also, since most gaps get filled and they often provide insight into when cycle highs/lows will occur.
.......http://www.JoeFRocks.com/
NEM XAU HUI
posted by Joe Ferrazzano at
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