(MENAFN- Daily Forex)
- The has rallied a bit during the session after initially gapping lower at the open. Wednesday has been a mess again, and we have seen a lot of choppy as we have turned around to finish positive.
- There are a lot of things out there that could come into the picture in order to cause some problems.
- After all, the central bank in the United States is nowhere near loosening its monetary policy, even though a lot of hopefuls on Wall Street think they are.
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The great thing about this is that the Federal Reserve caused this problem. After all, they have been throwing cheap and free money at Wall Street for 14 years. Once they were forced to stop day trading the stock market, suddenly their interests diverge from the market. If you don't believe me, go search when they got out of the market, it was essentially the exact top.Looking to Buy This Market
Now that they can't bring the market in their favor, or better put, cannot take advantage of a market that they are raking in their favor, they are perfectly comfortable letting the market stand on its own footing. The United States is still suffering at the hands of , and if that's going to be the case, the Federal Reserve is not going to step in and start bailing Wall Street out. It just does not line up with their personal account anymore, so there's no reason for them to do it.
Ironically, it's their own behavior that is causing the nonsense that we are seeing here. The markets rallying works against what the Fed is trying to do, and they have flat out said that they are expecting pain in the economy. When you repeatedly come and bail Wall Street out, they assume that's eventually going to happen. We will have a situation where they believe that the Fed is going to continue to tighten going forward, and we will have another short-term crash as a result. That's been the pattern for months, so even though this has been a very impressive rally over the last couple of days, there's no way I am looking to buy this market. In fact, I will be looking for that exhaustion candle to start shorting again.
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