me and you both understand that things are very explicable this time
fact - the big money and/or the pros are the only ones supporting the market (unless the fed directly trades)
case 1. One of the big money (i.e. Lehman Bros) get trapped.
Then it's trouble, a fight between themselves big guys (no scruples spared either). Market is not supported to take down the big score victim.
case 2. ALL of the big money is all trapped above the market, at least serious chunks of their capital.
There is nobody left to save them.
This time was the case 2 with a twist. Market was trapped when Aug drop happened. They were ALL allowed to exit with the engineered October rally.
Since the big money was/is out, there is no one to support the market. Common sense also dictates many of big money went short at the top which further would reveal what is supported forth-going.
case 3. catastrophe (did not happen, so not an issue)
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When things are top heavy anything can topple it off. After many years of bubbling this was a very top heavy.
So long story short anything even a 0.25 hike will do, which btw rate hikes into normality are actually desperately needed and very long overdue otherwise a true economic collapse is in the cards (if not already too late).
I think rate hikes to normality and QE can be together. But QE is an economic destroyer and should never be used to prop markets unless and only under dire circumstances and for VERY short time not like these incapable elected idiots in charge did for many years over.
The market is not the dog but the tail.
Economy and normal interest rates is the dog.
So it's not exactly a house of cards, although I like the saying, but a normal set of circumstances. In other words paraphrasing others the market is returning to acting rationally.
The pendulum is more to the middle.
In other news the d50 is down since December 2015 partially then since January 2016 totally, so yeah...
