Follow-up Video Update

I made a follow up video today to cover a few things I didn't in the last one. From the most recent data and today's FOMC announcement, I am not sure the market has another few weeks left in this rally. So I wanted to show a bunch of charts so that you know what I am seeing.

I had intended to put a short comment on the FOMC meeting at the end of the video, but there was an accident involving my finger and the "s" key which stopped the video, and I didn't feel like making another one. In short, the statements made seem to clearly indicate that the quantitative easing (massive treasury buyback currently in force) will end in October and the remaining treasuries to be bought will bought over that time frame, which is a slowing of the rate of buy back from my understanding.

Since the FED announced this policy in mid-March, the dollar has gotten hammered. Almost certainly there are many who expected them to increase or extend this program, which would further weaken the dollar. Now that it seems clear they won't, a major fundamental to the dollar's demise appears removed for the near future. I believe this will likely be bullish for the dollar on a fundamental level. That supports the bullish price pattern and extreme bearish sentiment currently.

This would also be bearish for stocks as noted in recent posts. I would anticipate that it would be bearish for gold as well. Since the purpose of that program was supposed to be to keep interest rates low for housing, yet the rates have increased substantially during this buyback, it would seem that the program was a failure (other than a huge equity pump). Now I wonder, if this unprecedented rate lowering external force is removed, will rates explode upward?

Also, there seems to be some indication from the chair of the Congressional Oversight Panel, that they believe that it is necessary for the fraudulent accounting practices that banks are currently using to avoid realizing losses on the books, need to be stopped with a return to mark to market rules. Well that's a step in the right direction, though it is obvious that such accounting fraud has occurred for quite some time, and is still occurring. All these thiefs need to go to jail including Paulson and the rest who orchestrated the theft of our dollars through fear mongering and then directly put a huge amount of that into the banks, who still haven't had to realize the loss from those "toxic assets." Also the FED should go, who monetized debt when they testified to Congress that they would not. So, while nothing has changed yet, if the COP do what they know needs done, then there could be a return to mark to market, which I have to assume will hammer many financial institution and destroy others. In any case, I think there is a real possibility that there may be market moving policy/regulation changes in the near future.