What will happen at the next time bad economical news from US side?

If you look at certain stock markets, sitting on 5 year highs, I consider it very likely to see some massive profitgrabs hanging there, only needing this as a trigger.
And I bet alot may anticipate on this, everybody knows that everybody knows it haha.
It's such an event that triggers a marketwide trends reversal.
The remaining question is then 'when'.

 

In todays dysfunctional, completely irrational markets, bad news is considered good as it means the Fed is less likely to taper QE but if you're looking for a date to pick for the whole thing to come crashing down then spin the wheel and you may get lucky. I think the most prominent issues at this very moment are the volitility in the Japanese markets, the next FOMC meeting where the slightest indictation that the Fed will taper QE will trigger a mass sell off of government bonds around the world and the Chinese banks lack of liquidity

 

I didn't say that the whole thing would crashing down. I said that the US side, that is since a couple years trended 'positive' in a relative fashion to the rest, at some point should trend to 'negative'. When the indexes/price levels became so high that the other side will appear as less risk, again in a relative fashion.
So not a crash, not the end of the world, just a trend reversal.

About government bonds, it's precisely by purchasing and selling government bonds on the open market, that a central bank directly controls the reserves pool within the wide banking system, as to control the level of lending, and thus price increasings / inflation. This is the reason for the large pool excess reserves that came into existence in 2008.
An indirect control is along the discount rate / window, but when that rate is close to zero, and negative rates may 'awake' too many, they control inflation throughout the bonds.
It's one or the other, either they target a discount rate, and accept the consequences for the narrow monetary base, either they target a certain monetary base and accept the consequences for the discount rate. In the seventies the Fed used the discount rate as control method, causing the requirement for more reserves than the monetary base allowed, which forced the central bank to increase the rate, which is the reason behind the constant exceedings of the targeted discount rate.
Since 2008 they chosed the other way, by direct control of the monetary base, with the purchase and sale of government bonds.

So, this is just a choice based on changed circumstances. If the Fed stops that reserves control method, it will just switch back to the rate method, so starting or ceasing that 'Quantitative Easing', is actually a nothingsayer that is hype-tagged as like it means something. QE didnt cause massive general price increasings. QE's end won't cause massive general price drops, except for the stuff that is hype-tagged with it. What actually is "Quantitative Easing"? A propaganda title. Trying to make those 'evil speculators' willing to pay bloated prices due to a frontrun ahead of them, while its end is trying to make the 'evil speculators' fear enough to make them willing to sell at low prices.
As of now, I look at QE as a scam that was intended to trigger a multiyear cycle in order to lure bank savings towards overpriced (by the frontrun) commodities and indexes. I trapped in it. Not again. What matters is a balance that, despite the gazillion balances on the central bank sites, you have to calculate yourself. The net monetary base, with 'net' brought by subtracting excess reserves. And that one justifies 2008 average prices +40%. Not +400% like we have seen in some commodity cases. $18-20 silver is well possible, if it isn't in this cycle (the Comex silver futures sat tuesday on a 16 years record low position), it will be in a next one, after again another batch current silver owners "got out" at a higher price level than today. I bought a month ago when spot was $21. Next target $20. See, markets aren't 'irrational'. Everything has a reason, and what appears as 'irrational' is just because it was caused by scams/misleading. Some see a 'functioning' market as a market where they get somebody elses something for their nothing. Says enough.

 

http://finviz.com/futures_charts.ashx?t=ES&p=w1

The highest red candlestick in years.
There is still +100% profit left to grab, for the first grabbing.
Is this just another interruption of the 5 years uptrend so far?
Or is this the begin of IT?

 

The world is about to end!
Quick load up on silver, ammo, food and a good bunker!
For years the SHTF day has been "jut around the corner".
Don't know why people don't get that it can go on A LOT longer than they EVER thought possible.

 

It might go on a lot longer , so we don't prepare for it?
And if your wrong.

 

Prepare and wait forever is that a strategy?
With ifs we can make up any scenarios

 

A red candlestick is due to people that didn't agree with you.
A high red candlestick is due to A LOT people that didn't agree with you.
It's like you don't wanna know.

 

It's not a strategy.
It's just... saving.
To spend... later.
Instead of spending... now.

 

Opportunity cost. Real thing. Check it out, Nuff said

 

Those that bought gold at $1900 also thought that they didn't miss the opportunity. In reality, they gave away opportunities. And others took advantage of it, Nuff said.

 

Economies on the verge of collapse are seen around the globe. The printing presses are running hot and the governments will do anything to delay shtf even way past salvation.
If the dollar crumbles the others will fall as well. I never thought of myself as a survivalist but the time to actually consider stocking up on emergency rations might be closer than I like to admit.

 

THERE WE GO!
HUMP HUMP!
Profit grab cycle #2!
S&P 6% down from the peak.
A surely healthy pullback!

 

So this wasn't the big one yet.
Chilling'.

 

I was trying to stay reading the thread but kept being distracted by Caput Lupinum's Quality "Swag Turtle" --- Now that really is GOLD!

 

So we have had another high red candlestick.
Is this ET ... err I mean IT?
We have had a 5 years uptrend to new record levels.
What goes up, must go down, Duff said.
Is this the begin of grabbing a half decade paper gains?
Anyone here proudly sitting on the Estimated Values?
What will be left of those paper gains, when YOU grab?

 

Should I now watch my silver wallet?

 

Yes, you should check that there is room for more silver.