99.8% of the world is long financial assets. Yes, the market “should” go down on Monday. Of course it “should” be much lower than it is currently. The Establishment, however, knows that 99.8% of the world is long financial assets and THAT is their constituency. And they will appeal to that constituency. Therefore, expect them to do what they always do: attempt to protect the longs. The shorts and cash horders are the distinct minority and thus irrelevant to the Establishment. Ultimately this pandering will fail, of course. You can put the law of supply and demand on hold for a while, but you can’t suspend it ad infinitum. Nothing would surprise me for Monday. A moonshot OR a total meltdown. Either is possible. But don’t ever forget that the Establishment will do whatever it can to protect its constituency: those long financial assets. If we have a meltdown Monday, it won’t be for lack of effort on the Establishment’s part. It’s just that they will finally have failed and the market will have acknowledged that ultimately economics and markets will trump the Establishment’s voodoo… which can keep people hypnotized for a looooooong time, as we have seen.
