As I sit here on the morning of August 31st, I was greeted by two headlines, the first (paraphrasing): The last plane of military personnel has left Afghanistan ending the war and was ahead of schedule by almost 24hrs, as it was “wheels up” on August 30th.
Here’s what we know that’s so concerning…
We (the U.S.) know for certain (both the military and administration state so, publicly) we left U.S. citizens behind. And, we did it leaving early, rather, than taking every last moment possible. It’s a f’n disgrace. Period.
Next, again, paraphrasing…
“The markets, once again, printed new all time highs in the overnight!”
In regards to the “markets.” Mr. Powell delivered precisely what said “market” wanted and needed to hear via his Jackson Hole speech. i.e., “Don’t worry, the printing presses are still running at full steam!” And with that assurance, along with month end window dressing timing, the “markets” reversed course and are right back to where they were. e.g., Setting new all time highs as U.S. credibility and prestige goes from circling the drain, to down it. But who cares, right? “Someone’s making bank!”
As I’ve been pointing out, my “$4Trilion Dollar Line” observations seem to be completely in play as they have been, with a resurgence back up and over. All I will say regarding them is this…
I seemed to have precisely figured where the machines want to travel because, if you look at the following two charts, you’ll see just how important they appear to be which, by insinuation, exacerbates their continuing relevancy. To wit:
And to back up my assertions. Here is the overnight futures market (S&P 500 E-mini™) using the exact same line as the one above regarding its machinations, again, to wit:
As I’ve articulated in prior observations, all I’ll say, is this…
Lose that line? Bad things are gonna happen, quickly. Because, nothing else matters.
As always, we shall see.
© 2021 Mark St.Cyr
Note: This is not trading or investing advice of any sort. This commentary is for “big picture” discussion purposes only. Please read, or re-read the “About This Site” page for any questions or clarifications.