A Well Timed Fed Appearance to Push All Time Highs!!!

So here we are another week with another Yellen cheer about how no bubbles exist, job market is rock’n and roll’n and inflation is absolutely not impacting anyone in this country.  But the market is on pins and needles this morning wavering as to whether or not Janet is going to continue her cheer or for some reason come out today in front of congress and tell the truth that the entire market acknowledges when they are alone.  Alas, not to worry.  The Fed’s mandate is not to speak the truth.  And this is how they can rationalize the lies to the American people.  Big Ben implemented openly the mandate for the Fed to control market behaviour through ‘transparency’.  And I suppose technically if you put green food colouring into a glass of water you can still see objects on the other side, they just happen to be much greener than reality.  And so the Fed lies to us constantly but does so for our own good.  It’s like the old adage “… this hurts me more than it hurts you..”.  I’m sure it is something they ‘struggle’ with but in the end know that it’s for the best.  So altruistic of them to rattle their ethics and moral principles just to benefit us poor ignoramuses.

But point being, we saw JPM and GS out today beating estimates.  JPM however is showing YoY declines in both earnings and revenue but hey they beat mediocre estimates that were estimating YoY declines.  So that’s still good right?  And their forward guidance for the rest of the year is actually further declines, but that still means the stock trades up right?? Yes it does.  And GS showed outstanding earnings and revenues, albeit most by way of their prop trading desk.  As Nietzsche might say, ‘Volker is dead’.  And so that stock is to the moon!!!!  But for some reason despite financials beating estimates today’s market is not up its normal 1% on premarket when this type of news comes out.  Why??

Well back to Yellen.  The market loves to sit in anticipation of Janet.  Debating whether or not she is going to further fluff the markets or will this time be the time she alone melts it down.  After all, the market no longer is able to think for itself.  It is completely a function of adjusted indicators and Fed guidance.  And so we wait.  And when the ‘Yell’n’ begins, the markets will stand in ovation of the wondrous news that our nation is now in full recovery!!  But wait……

Doesn’t that mean the printing stops, rates go up and the artificial Fed put disappears?  No, no, no silly people.  Of course the economy is now in full recovery but because all of this manipulation, I mean calculated brilliance worked so well why stop now?  As Joshual Feinman from DB A&WM said so eloquently, “Gotta go stronger longer”.  And you know it must be good advice if it’s taken from the box of a Ron Jeremy male enhancement pill.  Ah yes the experts.     So despite everything being fully recovered, the ZIRP will continue and the printing must go on.  And as such, the obvious conflict between ‘full recovery’ and monetary tightening will be averted.  Is that the market I hear roaring in the background??  Ah it is good to live in a world with no downside, no reality and parents like the Fed and the NWO taking such good care of us children.  Now back to my sand castle.