Make no mistake, the real loser of the 2016 U.S. presidential election was not Hillary Clinton. No, it was nearly the entire Western mainstream media which up to the final moment last night clung to a political fairytale it tried so very hard to convince its readers over the past two years. No matter whether you are a Hillary or a Trump supporter and no matter how you feel about the 45th president of the United States as a person, this is something that should deeply upset and worry you long after your current euphoria or depression has subsided and given way to your daily routine.
So we got our first day up after nine consecutive days down. And all it took was one weekend and a little help from some friends. I’m presenting the entirety of this sessions sans comments and leave it up to you to properly interpret the accompanying participation signal.
Last week’s decision to hold through a trading bot driven low participation reversal higher appears to have been a good one as of right now. At least the campaign managed to survive the weekend and that’s no small feat in this volatile market environment, which incidentally is why I am choosing my words very carefully. The ides of October often bring us stormy weather as well as volatile markets. Given ongoing fears of a large scale sell-off another momo update seemed appropriate.
That will be my motto for this last full trading week of the year as we are at the same time approaching the most significant fork in the financial road of 2015. As I am sure you are all aware this Wednesday at 2:00pm Eastern the Federal Reserve will issue its verdict on whether to make good on a year long promise to finally raise its benchmark interest rate (i.e. fed funds rate). The current consensus is an increase from 25bps to 37.5bps – a meager increase of merely 1/8 of a percent. Nevertheless the increase would be the first since the financial crisis of 2008 and would be perceived as setting the stage for further tightening down the line.
You probably noticed that [...]