Guest Post by Jesse
When suppertime came, the old cook came on deck
Sayin’ Fellas, it’s too rough to feed ya
At seven PM a main hatchway caved in
He said, Fellas, it’s been good to know ya
The captain wired in he had water comin’ in
And the good ship and crew was in peril
And later that night when his lights went out of sight
Came the wreck of the Edmund Fitzgerald.
Gordon Lightfoot, The Wreck of the Edmund Fitzgerald
I have included the two stock index cash market charts with technicals.
There is a potential ‘island top’ forming on the NDX, and the SP 500 looks like it might be testing the 200 DMA.
Bottom line is if stocks start rolling over with some real selling, and not this tissue thin HFT shell game that has taken the place of actual price discovery, then we could be in for a very rough ride.
Let’s see how much more the Fed is willing to spend to support their latest paper asset bubble. And let’s see if they can raise rates fast enough to have enough room to lower them again in response to another crisis which they have themselves would most likely have caused.
Today is the 40th anniversary of the wreck of the Edmund Fitzgerald during a fierce November storm on Lake Superior.