The Markets Are Beginning To Shift

Are you noticing that change is in the air?

The Financials

On February 18th the Federal Reserve Board approved a final rule strengthening supervision and regulation of large U.S. bank holding companies and foreign banking organizations. According to news reports the new rule will 'ring fence' foreign banks' American operations from deploying capital to its most productive destinations. The rule will require foreign banks to meet the same standards for capital and liquidity as American banks, rather than allowing them to rely on their parents' buffers, according to The Economist.

The outcome could lead to stagnation in foreign lending, and although the Fed states the new rule will reign in the cross-border financial contagion that has regularly erupted since 2008, the international depression that could result from the lack of capital flows could be far worse.

America will not be immune to the financial wreck unraveling in 2014. The go-it alone approach by the Fed will intensify opposition from foreign leaders and could lead to retaliation from foreign regulators.  In the February 2nd update I mentioned the warning from Dr. Paul Craig Roberts, "the international monetary system could be such a wreck that war may be inevitable". The people could change the outcome through their vote if only the media could be allowed to report the actual news. This leads me to the midterm elections in the Fall. The people will feel they have been robbed of their vote, the outcome does not look good for America, or the markets in the Fall.

The Markets

The markets are shifting. We are at the beginning phase of a new trend that will likely carry for many years.  Investors have become accustomed to the pullback patterns in the last couple of years, where each pullback was bought and the rallies were strong and quick. The pullback that began on our target date of January 21st, is different. We got the rebound near February 10th that we were expecting, but this time we will likely not see the continued momentum we had in 2013. Next week I see potential for the markets to pullback and then late March could bring a new high, but I am not optimistic after that.

The pullbacks in the markets could be swift, while the rebounds may lack the momentum we had last year. Be ready for sudden events.

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This has been a special report from Astrology Traders concerning this pullback we are experiencing and when it will likely end. Within our service we provide trade setups complete with real time buy/sell trade alerts. We offer a complete 30 day refund policy, no questions asked refund on our service. Below is our trade performance on closed trades since joining Marketfy.

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