Fighting the fed

On Tuesday I wrote how it seems all quiet on the western front and talked about how calm things have been relative to the pre-covid era. As luck would have it, that led to a hectic Wednesday where I was drowning in work and emails. Funny how things work.

On to the next…

Unemployment is skyrocketing. Businesses are on the verge of bankruptcy despite government bailouts. Banks and experts are saying we’re destined for a recession. Yet the S&P is up 11.14% this past week and the market is continuing to rally. This morning I put in a few limit sell orders, went to meditate, and came back to see them all fulfilled.

The Fed has made it clear that they’re going to do everything possible to prop up this market. Today they announced plans to inject another $2.3T into the economy which helped the rally going into the holy weekend.

I have friends that are still shorting the market and learning the hard way that they can’t fight the fed. I do think there’s a lot of price manipulation right now with the fed and government injecting this much cash into the economy to try to get us through the corona economy.

I’m enjoying this rally but some sold stocks on the way up today. I don’t think we’re close to clear yet. There is still a bearish sentiment and the government is going to need to prop up a lot of businesses and people for the foreseeable future. The Fed and Congress can’t continue to pay people forever and we have millions of people to place into jobs in the next few months until we can officially call this over.