MBO Issue 101 (May 2020) Can Fed Really Get Whatever It Wants
By Lawrence
Content
- Review
- Euro Down Trend Intact
- S&P Two Price Levels to Watch Out
- Gold Running Out of Fuel
- Big Picture Summary
Review
Euro continues with its wild swings yet failed to clear the former down channel resistance. Still on track to go lower as expected.
S&P broke its classic down move pattern thanks to Fed using year 2009 script to jack it up. Am I a conspiracy theorist? Nope. Because Swiss National Bank admitted in their holdings report that they were all out buying about $30 billion worth of Microsoft, Apple, Amazon, Google and Facebook. This in turn created a even bigger mess now that is not going to end well.
Gold spiked higher and is trying to hold 2020Q1 high at the moment thanks to Fed going all-in with their pledge to pump trillions of dollars into the system. How this will play out depends heavily if Fed is really going to do what they claimed they would do.
A messy month for sure and lots of confusion among traders and investors as the situation keeps changing.
Reminder: This newsletter is scheduled to release after Non-Farm Payroll report every month.
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