Is Another Banker Bust Coming?

So we got a sell signal on the January Barometer this year yet again, with stocks being down on the month; however, as speculated previously, it may not be a contrary indicator this time around. As you may know, the stock market was down Friday because of ahawkish statement out of a chief Fed mouthpiece, James Bullard. The question then arises, why did he do this if he knew stocks would not like what they heard? Answer: Because given the truly fragile state of the US economy, being almost completely hollowed out, the bond market is more important, bonds and the dollar($). The liquidity junkie the US economy has become is now at a point where it needs a fix every day.
And just about everybody in the money game knows this by now, or at least they should. Certainly those expecting never-ending money printing do, expecting the party to go on forever. And it’s the third year of the Presidential Cycle, with the odds heavily in favor of gains into the September area; not to mention it’s a year ending in 5, where stocks have been up for the past 100-years with no exceptions. So, on the surface there are good reasons to think stocks should be up again this year if one is nave. Because when not scripting official storyline for the mainstream media, even Fed members know they can’t keep this act up forever, not once they lose dollar hegemony demand.

This post was published at GoldSeek on Monday, 19 September 2016.