(Quoting Jim Rickards article posted at the daily reckoning)
"The next five weeks will mark one of the most significant transformations in the international monetary system in over 30 years.
What will happen in the next five weeks is just as significant as any of the monetary earthquakes mentioned above. There are three major events happening in rapid sequence. Here’s the list:
- On Sept. 4, the G20 leaders meet in Hangzhou, China
- On Sept. 30, the yuan officially joins the SDR basket of currencies
- On Oct. 7, the IMF holds its annual meeting in Washington, D.C.
You might be tempted to dismiss this calendar as “business as usual.” G20 leaders’ meetings happen every year. The SDR basket has been changed many times in the past. The IMF has global meetings twice a year (spring and fall). But it’s not business as usual. This time is different.
The hidden agenda involves the formal transition from a dollar standard to an SDR standard in world monetary affairs. It won’t happen overnight, but the elite decisions and seal of approval will take place at these meetings.
The SDR is a source of potentially unlimited global liquidity. That’s why SDRs were invented in 1969 (when the world was seeking alternatives to the dollar), and that’s why they will be used in the imminent future."
On Tuesday, the equity market opened flat but after the usual whipsaw early in the morning massive buy programs hit the market that pushed the stock market up all day, with a close at the day high. The buy programs and the rally should continue for a while as major central banks are aggressively ramping up their massive money printing business in order to prevent deflation.
Key support for NQ on Wednesday will be 4800.
-- Selling should be under control if NQ can stay above 4800. Without any new buyers except central banks, we should not be surprise if the market simply traded sideways.
-- If NQ should trade below 4800, selling could come back in, with supports at 4780.
