"The only thing that is certain is that the Fed will screw it all up. They always do. I think only Volcker got it right and we had to have a deep recession to cure inflation.
"Greenspan let leverage go too far in the '90s and kept rates to low in the aughts, then raised rates too much. That first fed the real estate bubble (along with liars loans and all that), then the skyrocketing rates and bad regulation broke the market and got us the great recession.
"Bernanke kept rates too low and monetized the debt with QE. Yellen is a certified idiot, both at the Fed and Treasury. Powell wanted a little inflation, got it, then got a lot more, and called it all transitory. Now he has to put the hammer down to show he's learned his lesson.
"They are making it up as they go along. All their PhDs, money center experience and globalist views keep bringing us disasters. This will not end well."
This is how people think about the FED!
At the moment, people are collectively thinking that the Fed will do the "right" thing at the next meeting in Dec with the cooling CPI/inflation. So the market is shooting up. Here is what I shared early this morning:
SPX indeed has touched 4000 during the day and here is the chart after closing today:
SPX is basically in a mini uptrend within a gigantic downtrend. Technically it can easily move further up to challenge its next strong resistance around 4100ish. But it can also easily back down now towards 3800ish. Either way, I think its upside room at the moment is quite limited and will most likely come down soon, if not immediately to set up a base for its final bullish run for the year end: the Santa Claus rally, if we are going to have one.
So my advice is clear: chasing/FOMO from here is dangerous!😨
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