A Centrally Planned Collapse

This week's short-covering rally was compliments of a four-way Central Bank coordinated short squeeze...

"Traders are front-running the well-known Pre-FOMC rally..."

"Since 1994, the S&P 500 is up an average 0.49 percent in the 24 hours before an FOMC announcement...the returns over those eight yearly FOMC meetings accounts for 80 percent of annual realized excess stock returns.

That got a lot of attention on trading desks."

On Wednesday this past week, the aptly named People's Bank of China injected the largest liquidity in three years into its financial casino. Clearly, Karl Marx was remiss in not including "casino-class" in the hard fought class struggle.

Meanwhile, in Davos, the Chinese Vice President said, "We have no plans to devalue the Yuan". Translating into English..."on Wednesday January 20th, 2016, Year of the Monkey, the Yuan will not be devalued. Ask us again tomorrow". 

Then on Thursday, Goldman Sachs marionette, the ECB's Draghi, said there are "no limits" to policy measures to prop up the European casino, which is down -20% this year. The Euro got monkey hammered on the news.

European stock composite:

Not to be outdone, beleaguered gamblers in Japan got together yesterday and unilaterally decided that the BOJ "Must act soon to prop up their casino, or risk losing credibility from the gambling class". Soon, meaning next Friday at the BOJ meeting. This was the news that sparked the biggest Dollar/Yen rally all year and thereby put a massive bid under S&P futures.

Yen/S&P: I don't which is which or why it matters...

And not to be left out, the Fed meets Tuesday/Wednesday next week to plot the next episode of Monetary Policy by Police Squad. 

And for all that dopium hopium, this (below) is the massive short-covering rally in oil, this week. Squint, it's at the bottom right:

  
In other words, that gets the chicanery out of the way, so collapse can proceed on schedule...