The markets are back to normal- for now. The technical indicators are functioning as they should be. The central banks are out of the picture and have exhausted their dominance. Although this has been the worst start of the year ever (if you are long) for the indexes, it is a welcome event. The markets are behaving in a rational manner. Price discovery is now " free floating". There is no going back ( we hope). What this means:
1. The global stock markets are now free to trade on "true value and price discovery".
2. The correlations will revert back to the mean for each asset class.
3. Although initially painful, the reversion back to normal operations is fantastic news to all of those traders and investors who had to deal with "rigged markets" since the QE experiment.
4. The "non-skilled" on Wall Street will be wiped out and the asset managers can get back to the business of hiring "the best and the brightest" instead of poorly skilled and trained sheep.
5. Hopefully; as Ayn Rand wrote about may years ago, mediocrity is dead. The Wesley Mouch Syndrome in the markets has run it's course.
Happy Trading! 2016 truly is a "watershed event" thus far! It is also the very best thing to happen to Capitalism in a very long time! How the U.S. markets ever hinged our success to communist markets in the first place is a mystery. Time to decouple.
