"They have record kinds of numbers. So I think it's a tremendous opportunity to buy. Really a great opportunity to buy."
D. J. Trump, 25 December 2018
As soon as Trump said the above on Christmas Day, I was fairly certain that my theory of why Treasury Secretary Mnuchin was calling the banks was correct.
The word came back to Trumpolini that the fix was in, and he could not resist making a statement to show what a great stock market trend caller he is.
Mnuchin did not need to know how the Banks were doing with regard to liquidity. And he certainly didn't need to let it slip that he was calling the Banks to the public. He was getting Wall Street in line, and giving the other wiseguys out there a heads up so they would not get in the way.
And then Trump came out an hung a lantern on it. It was like erecting three billboards proclaiming the official desire to 'Make Stocks Great Again.'
And so we saw the rescue of the stock markets today, in the first real, concerted attempt by government and business to pump that bubble back up.
And it worked fairly well. And those who had faith in the bubble were rewarded.
And if you think that they did this for your benefit, you are rather foolish.
so another check has been paid to that great account marked, 'moral hazard.'
I was only a little surprised that they did not put their minds to this sooner in the decline. Perhaps they needed for the oversold condition to work itself into place, and get a clear path for the ramp higher in the busy holiday schedule.
I did not watch television after the first couple of hours, because we went out and about with the company that is still here. My son's girlfriend is a real sweetheart from Shanghai via London, and is a wonderful helper in the kitchen.
She has never seen an actual prime rib roast of size before. And she was very much taken with the electric carving knife. She kept volunteering to cut the roast for me. She found the whole thing to be fascinating. LOL. Tonight we are going out for a
hot pot dinner. I am really enjoying all this.
I have marked the Fibonacci retracement levels on the charts. I may have to tinker with them a bit. The problem is where to mark the beginning of the decline.
Gold and silver were higher most of the day, with silver hanging on but gold given up its safe haven gain.
Have a pleasant evening.
