Economic Crash Landing …

Officially, out of Control

‘Out of control’, could actually be a good thing.

If the Fed’s admitted it’s out of their hands, that means markets could operate under real price discovery for the first time, since … well, 1913.

If that’s true, future Fed meetings and their subsequent pontifications will be meaningless as far as market reaction; no matter what they do.

Wyckoff said as early as 1902, prices move by a force of their own that have no connection to real values.

Unless proven otherwise, we’ll use the ‘out of control’ paradigm on a go forward basis.

It should be noted, while moving forward with that new paradigm, there’s a massive herd still trying to figure out what the Fed ‘has to do’.

Newsflash: The Fed does not ‘have to do’ anything.

Matter of fact, they’ve already done it. The elites have made windfalls, selling (along with the Fed, itself) at the top.

Real Estate: ‘Pig in the Python’

The last update showed a trendline that’s been subsequently broken; not by much but price action has definitely pushed through.

The hourly chart of IYR, has been updated to show where we are now … just after the open.

At this juncture, price action’s in a down-channel.

Positioning

Best case scenario would be for IYR, to contact the right channel line and reverse; thus, allowing a low risk point to increase the short via DRV (not advice, not a recommendation).

That may happen this session or next … or, of course, it may not happen at all. That’s the way of the markets.

Summary

Evidence continues to pour in that real estate’s finished.

This latest post from Scott Walters has the rich selling off their luxury homes … and fast.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

%d bloggers like this: