behind the scenes: Stock Market January 2014

Posted: February 3, 2014 in Uncategorized

Behind the scenes the market situation looks even more ominous than the already bad looking reality.

Looking at the institutional charts is evident that someone pumped a lot of money in the futures before market opening (specially Wednesday and Friday) to prevent  a total collapse – and they managed it, just.

It must be the FED (they could not NOT taper as that would have sent even a worst message…that there is contagion risk).

The fact is that a USD 10 billion hole (the tapering) is equivalent of the monthly investment inflows for India, Turkey, Ukraine, Chile. Argentine, Thailand and Indonesia put together. It is like a shock wave.

And as hot money in search of yield are now going back to the US …..the Emerging Market issues will be a feature of 2014…on and off (a bit like the EU crisis).

They say the FED always win. Maybe it is true – but it is true also that this is a new game also for them.

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