Big Time Shake Out – Second Half Begins

You’ll have to forgive my cynicism / scepticism but……

I find an “overnight” ramp / early morning “pop” in Nikkei / SP 500 a tad suspect considering it’s “officially” the first day of the second half, and The Fed’s POMO is set to be reduced throughout July.

That means….no POMO ( permanent open market operations ) on Friday’s leaving the grand total for July around 19 BILLION Dollars. You do get that right? The Fed literally pumps 1 Billion Dollars “per trading day” into U.S markets – and that’s considered a “reduction”!

That is some serious “July 4th Weekend” pump right there now isn’t it?

Commodity related currencies “kicking my ass” as everything under the sun moves from the “low end of the range” to the “high end of the range” within hours.

Short of the “draw down” in a couple of trades / pairs I hate to say it but….I do like the action here as……..where most are looking at this as a “new high” in U.S Equities the reality of things have it that- it’s really still just a “lower high” in Japan.

The Nikkei ( as frustrating as it is ) still trading “lower” despite the blatant pump job here overnight. I don’t expect it to go any further than this…..still in range all be it….no fun here as of this morning.

Take it for what it is here today…..

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