I have said in other posts that the time will come when economies around the world have sustained so much damage that central bank buying won’t be able to hold the stock market up. I don’t have a way to tell when that time will be. It may be Monday. Shorting is still extremely dangerous, Your broker wants to run your stop and the friends of the Fed want to squeeze you. Both are likely to get what they want.
On Monday expect, as always, the central banks to stop at nothing to prevent a decline. There are two forces that account for what little economic growth the economy has experienced. One is the incredibly tenacious and stubborn stupidity of the American public. The other is the spending the rich do given the enormous welfare benefits they are paid by virtue of government’s ongoing asset enhancement initiatives. Political power is shifting. Foreign markets are not close to new highs.
All of this is extremely damaging to the long term viability of the economy. The market can decline if enough stock hits the market on any given day. This is not likely because investors are trained to make a wait and see, somebody will save me decision. Chances are the Friends of the Fed will soon cut and run because profit opportunities are drying up. There are a number of things the mob does not do. One is take financial risks. The other is to look after anyone other than themselves. If the Federal Reserve can no longer take care of the mob, the mob will no longer have any reason to look after the Fed. They are not patriots. When the mob cuts and runs, the market will crash, no matter what.
The following are links to previous market posts. These may be helpful in providing some background.
The Grazin’ Is Good Is a fine tune by Curbside Jimmy.