Wafting Into Thin Air

The Morning Line for Thursday Published Wednesday, October 30, 5:53 p.m. EDT Wafting Into Thin Air... Shares rose Wednesday on the ho-hum news of a third rate-cut in 2019. Will it be the last? Of course not; it’s only a matter of time before Fed chief Powell dons his well-worn knee pads and gives Wall Street and the President everything they want. For now, though, Powell & Co. would have us believe that the U.S. economy is doing fine and that there is no urgent reason for more easing. That’s baloney, of course, even if their little white lie is somewhat mitigated by the flurry of activity in the housing sector. Refinancing and home sales have picked up with 30-year mortgages down at 3.75%, and we can be confident the real estate will remain buoyant, at least, if rates continue to fall. A point lost on the dim bulbs who report on such things is that it will come at a cost. For although marginally qualified buyers may finally have an opportunity to "own" a home, they will be getting in the door at inflated prices. This is bound to become burdensome when the next recession hits, especially if home prices fall even a little, never mind significantly. As for all of that re-fi money, that’s how the Fed shakes dollars from trees to pay for free lunches, and there’s no denying that it will add to household liquidity. But don’t expect consumers to spend it all, or even most of it, on bling. They can sniff a recession coming just as you and I can, and, fully ten years into a recovery cycle, they are not fooled by the stock market’s autumnal exuberance. Puttin’ on the Ritz This just in: We see that the usual suspects have seized control of AAPL in after-hours trading. The flurry of short-covering due to bullish Q3 earnings news has pushed the stock decisively past a 248.48 resistance that was drum-rolled here the other day. Yes, it’s possible that by the time you read this AAPL will have detumesced sufficiently to fill buyers with remorse. However, the bear panic will nonetheless have blown a key resistance to smithereens, smoothing a path to at least 283.97, a Hidden Pivot that lies 14% above. When the shares of the most valuable company in the world are rising so strongly, that will put a floor beneath shares and pull the broad averages significantly higher. Realize that it is panicky bears more than any other source of buying that helps sustain the illusion of a strong stock market. We hesitate to say "healthy" stock market because no one in his right mind could believe that the relentless buying that has occurred in recent months with the global economy tottering is healthy. However, like the bolt of lightning that brought Frankenstein to life, short-covering has caused Tesla shares that were in a death spiral to tap-dance to the Street’s version of Puttin’ on the Ritz. Never mind that Tesla’s bullish earnings surprise was attributable in large part to dazzling accounting tricks that would cause any serious auditor to roll his eyes. Expect the dog-and-pony show to continue shamelessly as stocks ascend into the thin air amidst faltering earnings projections and diminishing real returns on funny money. [View Post on the Rick's Picks WebsiteÂ]( We’ve had many requests from traders around the world for Rick to host his workshop at various hours in their local time zones. The solution: Our extremely popular workshop,  "How to Become a Consistently Profitable Trader" (without constantly getting stopped out of winners!) is NOW available on demand for your convenience. No more need to rearrange your schedule so that you don’t miss out on this powerful, tool-packed workshop. Watch it now or at your convenience. [Sign Up For The Workshop]( Step #1View My Free Content? [View free active trades]( #2Join My Trading Community:[Facebook]( l [Twitter]( l [YouTube]( Step #3 Start A Free Trial Subscription of Rick's Picks[Start my Subscription]( Step #4Learn to Trade The Hidden Pivot System Yourself[Join the Free Workshop]( Copyright © 2019 Hidden Pivot Enterprises, All rights reserved. Disclaimer - This email is for information purposes only and should not be considered personalized advice or a solicitation to buy or sell any securities.   [Unsubscribe]( Rick's Picks - Hidden Pivot Enterprises PO Box 270646 Louisville, Colorado 80027 United States