Central Banks Take Charge Of The Tape

10-23-2015 6-17-15 PM

The ECB is rumored, due to little bond supply, to buy stocks with their QE program. Doing so would copy Japan’s BOJ who make no secret of buying stocks to support markets. Now China’s PBOC in acknowledging a weak economy, cut interest rates. And after outlawing shorting and even conventional selling, now markets are not a legitimate two-way trading affair.

It doesn’t matter that an overwhelming majority of pundits claim the U.S. central bank dares not raise interest rates. They’ve been saying they will do so, and do so this year. Isn’t their credibility is at stake?

Bottom line, central banks are in charge and want markets higher period.

This week many market sectors have heeded the central bank’s not so subtle mandates leading to almost panic buying for stocks. Many sectors have moved into green for the year.

It’s been quite a spectacle as overall earnings and ongoing economic data have been weak and are cast aside.

As I and many others have asserted, the stock market is not the economy and this has never been truer than now.

Market sectors moving higher included: Mostly everything.

Market sectors moving lower included: Commodities (DBC), Crude Oil (USO), Base Metals (DBB), Gold (GLD), Treasury Bonds (TLT), Euro (FXE), Yen (FXY), REITs (IYR), Utilities (XLU), Retail (XRT), Energy Stocks (XLE ) and so forth.

The top ETF daily market movers by percentage change in volume whether rising or falling is available daily.

Volume was higher and breadth per the WSJ was positive.

10-23-2015 6-55-49 PM Diary

I’ve not much to add as the tape is doing all the talking and should be respected despite any negative opinions anyone, including me, might have.

Let’s see what happens. 

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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