Our Made to Order Market

I heard two quotes in the financial news this morning that caught my attention. First: that about 30% of Americans will end up getting infected with the coronavirus. Second: the S&P 500 is on pace for the 5th best month in the last 30 years.

These statements are incongruous, at best. Yet, IMO, it’s more a comment on the ability of central bankers to determine stock prices through both direct and indirect means.

Everyone knows about the indirect: flooding markets with trillions of dollars that have to go somewhere. Most observant traders know about the direct: hammering volatility and manipulating currency pairs and other drivers of algorithmic trading – the tail that wags the equity dog.

For an example, look no further than VIX. It has tagged a deep retracememt of its last rally three times in a row.

This, of course, follows the bearish (bullish for stocks) 10/20 cross and channel breakdown we anticipated last week.continued for members…