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A Quick Market Note for 10.29.2021

Gang, I usually refrain from commenting on the markets during the earnings fiction promotion, er, season. There is a good reason as to why but let’s just leave it at the Federal Reserve has basically admitted to purchasing stocks for the “good” of the economy and their board members individual accounts. Thus anything anyone “predicts” is usually countered by stock buy backs, outright lies, or actions to crush anyone looking for actual price discovery.

Add in the “narrative” promoted by the various financial used car networks and equity markets were bound to rise to new all time highs. Unfortunately for the narrative moving forward however, the smart money in the bond market is sending warnings with the 20 year and 30 year Treasuries inverting yesterday, the 2 year breaking above 0.50%, and the failure of the clown show in D.C. to get anything done regarding the debt ceiling. There is a storm approaching and it’s going to be a terrifying experience for the rookies.

Thus once this somewhat hollow earning season winds down next week, expect a lot of turbulence moving forward. I’ll hammer that next week with some fascinating charts and a very interesting explanation as to why each rally to new highs also has mass distribution from some of the big boys, meaning there is not too much to support this market heading into the last two months of the year.

Have fun trading, don’t be a pig and take profits to preserve capital ladies and gents.

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