While discussing the Fed’s huge move this morning, Hedgeye’s Keith McCullough echoed our messaging herein; which is, we expect rallies, but — for the time being — of the ultimately (they might last awhile) unsustainable bear market variety:
“You can only defy economic gravity for a short period of time, then the damn thing starts happening again.”
And here’s from my own pre-market note to self this morning:
“Fed announced unlimited QE, including commercial asset-backed; equity futures went from 4% down to 2.5% up on the news. Awaiting a fiscal package. The combination (including qtrly rebalancing) is likely to be positive for stocks for the time being. Anything right here, however, can only be characterized as a classic bear market rally…
The former is being faded badly as I type; S&P back to being down 4%.