Just after I’ve made two posts here and here saying that in the case the stock market does not flop back to bull mode the current level already looks like an exhaustion point after which the bear programming should continue. I also copied two messages from other board here where Charmin says that the current point is very similar to June of 2001. Everything that happened in the last two months is very, very typical for the bear market.
Well, apparently Bernanke is reading the charts as well, and I suspect that he’s reading the charts much better than I do. He made the announcement to expand TAF by another $50 bln. Remember this post? Where Bernanke says he’s now accepting catshit as TSLF collateral? Well, today he announced that even miceshit is accepted. The Fed coffers must be quite smelly now 🙂
The time of this announcement was incredibly damaging for bears. Surely the stocks rally with a danger that the technical parameters of the bear market will be broken. As millions of people are trading by those charts you can expect an extended rally that will fly away from any fundamentals. Bernanke does read the charts, this is why Bernanke put is so real.
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