Stocks And Precious Metals Charts - Dear Mr. Powell

Stocks rose to new highs, based on the pandering of the Federal Reserve to the moneyed interests.

It is, after all, the fashionable thing to do, since everyone who is anyone is doing it, from the liar-in-chief to the lowest creatures of the beltway and the corporate media.  En Vogue.

Fed Chair Powell now owns this latest asset bubble, to the same extent that his predecessors going back to Greenspan at least owned theirs.

I would not put all the blame on the Fed, although the wiseguys are likely to pick them as the scapegoats. 

I think we are long past the time when illusions could be dismissed as wishful thinking or as acts of naive desperation. Men truly go mad in herds and come to their senses slowly, one at a time. And some, in their stubborn pride, never will.

There is little doubt in my mind that US stocks are forming a blow-off top. The timing is going to be problematic as it always is.

What will trigger the next decline? Likely candidates are the FOMC meeting when they cut the interest rate, and the Street sells the news.

Or the upcoming earnings season, which begins next week, and the many surprises and realities that will be coming out of the dark.

Or some exogenous international event, political or economic, that sends the algos scurrying towards the exits.

But, while the music continues, the financiers and their creatures will keep dancing. For who could have seen it, whatever it is, coming?

Have a pleasant weekend.

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