Loading ...Last week, the bipolar US markets finished on exuberance. The Dow finished at 15237.11 (+111.04), the Nasdaq at 3791.87 (+31.13), and the S&P at 1703.2 (+10.64). Absolutely no progress has been made in Washington. It has become apparent that the news in Washington is nothing but a distraction. Maybe if we start defaulting the market corrects itself.
So many are probably wondering what moved the markets last week. After extensive digging, we find two strong culprits for moving the market higher. The primary culprit is that all markets (global markets) are once again strongly inversely correlating with the US dollar. As the US dollar falls, the markets head higher. The secondary culprit is the probable B-52 carpet bombing new Fed Chairperson Janet Yellen. No doubt, Janet drops infinite paper to fuel the dying US economy (which leads to a weaker dollar).
The most underrated and enlightening news last week came from Wal-Mart on Saturday. There was total simultaneous chaos in thousands of Wal-Mart stores when the EBT cards stopped working. The fat and lazy, or poor and unfortunates who make up the food stamp nation were pissed. So, this is what the government eventually has to deal with when one of its sponsored handouts is taken away. The media claims a glitch at Xerox caused all of the EBT cards to not work. Personally, we at Alphas Edge believe that the government was testing out what would be a possible consequence of removing a program. The problem now is that these people believe that all this government sponsored programs (not just the EBT) are now entitlement programs. Good luck ever removing one of these programs!
This morning, the markets are once again selling off. The week is starting out just last the previous weeks. The probable is that this week is a rerun of last week, with the week ending higher based on a government resolution. There is a chance however that our mentally crippled friends in Washington drop the ball and totally crash the global markets.
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