The Wall Street Journal, owned by the same media company as Fox News, says it all in this morning’s headline: “Stock Futures Gain Ahead of Anticipated Fed Rate Rise”.
By what logic would stock futures attract elevated interest from investors on the day the Fed’s first interest rate hike is to be confirmed?
There is none.
What is happening here is that the President’s Working Group (or its agents or affiliates) appears to be actively making direct asset purchases in the form of S&P 500 (INDEXSP: .INX), NASDAQ-100 (INDEXNASDAQ:NDX), and Dow Jones Industrial Average (INDEXDJX:.DJI) index futures so that obedient and complicit “media” companies will report what appears to be positive investor sentiment in the face of a hugely negative catalyst.
Never mind that the war in Ukraine has seen regular episodes of PWG direct asset purchases to offset the stampede for the exits that is the natural investor response to geopolitical instability.
Again, just as dark matter is known by its gravitational effect on light, the counterintuitive rise in such index future interest, timed to perfectly precede the Fed’s public announcements, is not provable because of the opaque nature of futures market reporting.
Be that as it may, there can be little doubt that only lunatics and PWG agents have any reason to buy assets that are of no interest to profit-motivated investors. But I have to confess, this is purely speculation on my part.
Does anybody else have any ideas as to why index futures of the major indices rise ahead of Fed announcements?
It could be that increasing numbers of sophisticated players are front running the events of the Fed, knowing that the PWG dark matter influence will be there to buy on the morning of these releases.
I guess its the 2022 version of the Fed put.
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