Best of the Week
Most Popular
1. Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - P_Radomski_CFA
2.Fed Balance Sheet QE4EVER - Stock Market Trend Forecast Analysis - Nadeem_Walayat
3.UK House Prices, Immigration, and Population Growth Mega Trend Forecast - Part1 - Nadeem_Walayat
4.Gold and Silver Precious Metals Pot Pourri - Rambus_Chartology
5.The Exponential Stocks Bull Market - Nadeem_Walayat
6.Yield Curve Inversion and the Stock Market 2019 - Nadeem_Walayat
7.America's 30 Blocks of Holes - James_Quinn
8.US Presidential Cycle and Stock Market Trend 2019 - Nadeem_Walayat
9.Dear Stocks Bull Market: Happy 10 Year Anniversary! - Troy_Bombardia
10.Britain's Demographic Time Bomb Has Gone Off! - Nadeem_Walayat
Last 7 days
Stock Market Crash Edition - 26th Mar 19
Handy Ways to Boost Your Home Income - 26th Mar 19
US Treasury Bond Yield Inversion and Political Fed Cycles - 26th Mar 19
Golan Heights Oil all about the Shekels - 26th Mar 19
Falling Yields a Catalyst for The Gold Catalyst - 26th Mar 19
Can We Lock Up Rachel Maddow Now? - 25th Mar 19
Real US National Debt Might Be $230 Trillion - 25th Mar 19
Friday's Stock Market Sell-Off - New Downtrend or Just Correction? - 25th Mar 19
20 Days Left to Find Buying Opportunities In Gold - 25th Mar 19
Will the Historic Imbalance in Gold Stocks to Gold Price Resolve ? - 25th Mar 19
EasySMX Wireless Games Controllers Review - 25th Mar 19
Stock Market Short-term Top - 25th Mar 19
UK Population Growth - Latest ONS Immigration Statistics and Consequences - 24th Mar 19
The Fed Follows Trump's Tweets, And Does The Right Thing - 24th Mar 19
Yield Curves, 2yr Yield, SPX Stocks and a Crack Up Boom? - 24th Mar 19
Risk/Reward in Silver Favors Buying Now, Not Waiting for Big Moves - 23rd Mar 19
Similarities Between Stock Market Today and Previous Bull Market Tops - 23rd Mar 19
Stock Market DOW Seasonal Trend Analysis - 23rd Mar 19
US Dollar Breakdown on Fed Was Much Worse Than It Looks - 23rd Mar 19
Gold Mid-Tier GDXJ Stocks Fundamentals - 23rd Mar 19
Which Currency Pairs Stand to Benefit from Prevailing Risk Aversion? - 23rd Mar 19
If You Get These 3 Things Right, You’ll Never Have to Worry About Money - 22nd Mar 19
March 2019 Cryptocurrency Technical Analysis - 22nd Mar 19
Turkey Tourist Fakes Market Bargains Haggling Top Tips - 22nd Mar 19
Next Recession: Finding A 48% Yield Amid The Ruins - 22nd Mar 19
Your Future Stock Returns Might Unpleasantly Surprise You - 22nd Mar 19
Fed Acknowledges “Recession Risks”. Run for the Hills! - 22nd Mar 19
Will Bridging Loans Grow in Demand and Usage in 2019? - 22nd Mar 19
Does Fed Know Something Gold Investors Do Not Know? - 21st Mar 19
Gold …Some Confirmations to Watch For - 21st Mar 19
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

Draghi Out Early..Intentional!...Desperation...Near Breakout.....

Stock-Markets / Stock Markets 2015 Jan 22, 2015 - 10:48 AM GMT

By: Jack_Steiman


So the market was down fairly hard this morning. Not the action Fed Governors want to see ahead of their big report due out tomorrow from the Euro Zone on the amount and full extent of their new QE program. They don't like when markets can't make the breakout they so desperately want to see. Amazingly, and out of nowhere, suddenly the Euro Zone QE program is made public a day early. Shocking! Yeah, right! The market explodes. The S&P 500 reverses up twenty points in moments. It spends the entire day after that testing the breakout level of 2035. It doesn't break out in the end with any force, but it does spend the day trying at least. It prevented the day from being a bad one.

Don't for one second think this wasn't an intentional act folks. Not a level playing field, and, basically, it was a test run. They wanted to see how our market would respond to the news of a trillion dollars for the year to come. Maybe they did the trial test to see if they need to add something new tomorrow. Clearly they helped the markets today, but they didn't get the move they hoped for, so now maybe they can add something that they think will get the job done tomorrow. There was no reason to put out the report a day early, except to gain knowledge about how global markets would react. It's disgraceful, but it is what it is, and now tomorrow morning we should wake up to the new, full announcement. It will be so interesting to see what new information may be added upon what we received today. It never ends. Probably never will.

Desperation. Never has it been so obvious about how bad the global economy truly is. The fight against deflation is powerful and never ending. To offer up the Euro-Zone banking institutions one trillion dollars over a single calendar year speaks for itself. The word desperation may not be enough to describe it. We all know by now that the feds only real job on a daily basis is to keep the Wall Streets of the world moving higher so as to protect the ever weakening Main Streets of the world. Is there a price to pay for all of this insanity? Probably, but sadder still is why waste flooding the banks with cash that won't be used by the public? It has never worked anywhere before. Ask Japan. Ask anyone who has tried it over time. The perception works for the global stock markets, and that's all these global-bank heads care about. Perception, not reality. So tomorrow we'll get the full picture of what desperation truly looks like. It's not pretty. The Wall Streets of the world are as separated from the truth as they have ever been. And the beat goes on.

So what next? We're close to a major breakout. You never argue with price. If the oscillators confirm then so be it. With weekly and monthly charts as bearish as they've ever been, it makes buying tough. But if we break out, we break out, and that's that. A solid close over 2035 is all we need to see. It's a battle between weak charts and global bankers. Right now they're winning big time. Tomorrow should give the final answer folks. Don't fight it. Froth has been with us for quite a long time now. No reason to expect it to go away with so much activity from the heads of the financial world. If the bulls have any reason to run with it, it's my guess they will. Again, I think tomorrow is the day one way or the other. Breakout and fail or breakout and run. One or the other is my guess. I doubt we gap down hard tomorrow unless Draghi does something unexpected.



Jack Steiman is author of ( ). Former columnist for, Jack is renowned for calling major shifts in the market, including the market bottom in mid-2002 and the market top in October 2007.

Sign up for a Free 15-Day Trial to!

© 2015

Mr. Steiman's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Steiman's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules