I haven't written anything in awhile because frankly, what has changed? What has changed since Black Monday in August? NOTHING. We are still in the same type of environment where the markets continue to hope against hope that bad data after another will lead to more central bank stimulus.
Can you blame the market? Of course not. It's the same thing as giving heroin addicts what they need the most - more heroin. You really think they'll give up the free supply so easily? What makes this circle jerk so ridiculous is that the central banks love the center of attention and wielding the power over the global financial markets. You can, in a way, say that the 2008 recession has put them up on a pedestal akin to rock stars. This is something they never felt and now that they've tasted the fame, they don't want it to end.
Before 2008, I am quite sure 90% of the global population did not know what a central bank was nor what they do. But after the experimental policies set forth by the CBs, they've become infamous. So here we are - a status quo wherein traders expect the central banks to be the buyers of last resort and to save their butts whenever things get bleak.
So in the end, after 7 years, has anything really changed? No. Carry on. The farce must go on.
Have a great weekend everyone!
Traders from Equity Sense will be writing on this blog on positions and other market-related things.