Faltering Friday – Our Tuesday Prediction Nails the Market Move

Told you so!  

Our first morning post of the short week was titled: "Testy Tuesday – 4,800 and Bust on Nasdaq in Wake of Lame G20" and we predicted bothe the move UP to 4,800 on the Nasdaq Futures (/NQ) and the failure to hold it – all in one headline!  

I won't get back into WHY it happened, I laid that out on Tuesday and you can go back and read that yourself.  Wednesday, the markets were up but I we stuck to our bearish guns as I warned in that day's headline: "Weak Dollar Wednesday – Markets Propped Up in Grand Illusion" and, once again, the headline says it all.  Yesterday morning, the markets were stubbornly high, so we led with: "Faltering Thursday – Still Shorting Those Futures" for what are now, obviously, great reasons.

Remember – I can only tell you what the markets are going to do and how to make money trading it – that is the extent of my powers...

This morning, aside from the macros we expected, we have the rate hike we expected in the form of the Fed's Rosengren saying: "Waiting too long to tighten policy could lead to conditions necessitating more rapid increases."  That's not what the bulls wanted to hear but you have to tell the kids there really, Really, REALLY is no Santa Clause and then give it some time to sink in as it's a huge betrayal of everything they believed (and everything you told them, you lying bastard) their whole lives – very traumatic.  

The pattern every time is for a "dream" of about 3% growth.Of course, if you want real trauma, call on Dr. Jeff Gundlach, who prounounced our economy dead, no revival as GDP forecasts are trending lower and lower despite 23% of the Global GDP's Central Banks now paying you to borrow money.  Gundlach has abruptly reversed from his call for the Fed to stop QE and now feels that emergency stimulus measure are in order to stave off a potential and imminent re-recession. 

Gundlach feels rates have reached their lower limits (negative will do that, I suppose) and we agree, of course and we're short…
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