Silver markets have rallied a bit during the trading session on Tuesday as we have approached the 50 day EMA and bounce, and of course, got the CPI numbers during the early part of the session which missed expectations. In other words, traders are starting to celebrate the fact that inflation may not be as strong as initially thought. With that being the case, very likely that we would see a push into stocks as people start to worry less about the Federal Reserve tightening monetary policy.

S&P 500 Video 15.09.21

Regardless, the Federal Reserve is there to keep Wall Street profitable, so I do not think that you can sell stocks or indices anytime soon. At this market were to drop 10%, the Federal Reserve would be almost guaranteed to do something. Recently, we have seen a bit of a scandal here in the United States as it has been released that a lot of the governors of the Federal Reserve have huge stock portfolios that are very sensitive to their own decisions, so the scam has been acknowledged.

Nonetheless, with the way they reacted to the news, by simply buying index funds, it looks as if they will continue the same game. The markets know that the Federal Reserve is on their side and will protect them at all costs. Unfortunately, it is not a free market, but it is a market that we have and as you can see it only goes higher over the longer term. If we can break above the 4500 level, I anticipate that would open up the move towards the 4600 level. To the downside, if we did somehow break down below the 4400, I might be a buyer of puts but that would be about it.

For a look at all of today’s economic events, check out our economic calendar.

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By Marek

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