The FED Needs a Crisis to Expand Money Base
Equities are limited in range. The next major step will need a money base expansion i.e. QE. We believe the next crisis the FED could introduce such program. Currently, we would like to see a deeper wave four perhaps 1700 range to clear the excess.
Moving Averages were essentially in a linear function throughout the QE expansion. As the program ended, linear gave way to conditional and chaos. We are in a period of conditional liquidity, where it’s a dangerous place to play.