Whatever it Takes

Yesterday’s meltup, like most Mondays, had a very clear objective: reach new highs and protect them at all costs. It’s also a pattern typical of most weeks during which a Fed meeting (e.g. Jackson Hole) is scheduled.

The mechanics of achieving this objective haven’t changed in the past 10 years: crush volatility, ramp oil futures, devalue the yen, etc. The ease and frequency with which they’re employed, however, is nothing short of astonishing.

This time, they didn’t even wait until ES had reached its 50-DMA. It makes you wonder: what are they so afraid of? Is the market otherwise so fragile that it needs constant manipulation in order not to crash?

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