The Dollar Has Reached A Point Where Either Path Leads To A Stock Crash
By Charles Hugh Smith
The dollar has reached a point of double-bind for the Fed: push it down further or allow it to rise, it won’t matter: either way, stocks will fall off a cliff.
I’ve got a funny feeling that all the ramp-and-camp, extend-and-pretend POMO games propping up stocks are about to stop working. That would of course trigger a long, deep slide in equities, because as we all know, it’s the Federal Reserve’s games which have goosed the market to its current lofty heights. The market’s confidence in the Bernanke Put–that is, the belief that the Fed will never let stocks decline– remains supremely undimmed.
A lot of very good technical analysts see sentiment reaching lows which usually mark market bottoms. I am not so sure about this interpretation, for the investors intelligence readings are still complacently bullish.