 Dear Money & Crisis Reader,
Stocks have ripped higher over the last 48 hours. There’s no shortage of reasons for this. - “Someone” manipulated stocks higher on Tuesday morning.
- “Someone” leaked to Bloomberg that the Biden administration intends to keep Jerome Powell as Fed Chair.
- Short covering.
Regarding the first point, Tuesday morning saw clear and obvious market manipulation (see the rectangle on the intra-day chart below). No real, organic buyer drives markets 39 points higher on no news. Real buying from institutions is subtle and carefully placed so as NOT to move the market. The big “tell” here is that as soon as the manipulation ended, stocks traded sideways for the remainder of the session. This indicates there was no real buying behind the move, it was simply “someone” wanted stocks higher, forced them higher, and then stopped. 
On the second point, the news that Jerome Powell will likely remain Fed Chair after his first term ends in 2022 is highly bullish. That’s because the only reason the Biden administration would keep Powell on would be because Powell agrees with the Biden administration’s policy goals. Those goals are to print enormous amounts of money (for things like Biden’s $3-plus trillion infrastructure scheme). This implicitly means the Fed will NOT be tapering QE, NOT raising rates, NOT tightening monetary policy until at least after the 2022 midterms. And finally, we get to number 3: short covering. | 
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