“And believe me, it’s a very large bag!”
Another day, another off hours ramp on “vapors”; today’s installment of lunacy comes fresh off of a 100 point Dow30 ramp in Asia & Europe, where apparently, the Chuckleheads that used to trade gold and ramp it up every night, are now giving seminars to the Chipmunks who trade stocks. I said it yesterday and I meant what I said; we may have entered an era where central banks are never going to allow stocks to ever go lower again.
And why should they? Think about how easy it is to hit the CNTRL-P button on the mainframe computer at the central bank and create local currency; take said newly printed currency and sell them for dollars; take the dollars and buy Apple, Google, Microsoft, Facebook, Amazon, and a host of other Dow30 conglomerates, and somebody please tell me, where is the downside for these central banks? Who cares what the price is they pay? If SHTF in a big way, 1) buy more, and 2) buy more after that. They aren’t using the QE printing presses to shove into domestic social spending programs, and there is no inflationary consequences to worry about. There’s nothing but upside here, cuz in 5 – 10 years they will be a major, if not downright the majority, shareholder in the largest companies in the world.
Throw in assclowns like Uncle Warren Buffet to the mix and the slew of company boards involved in giving themselves a raise by buying back stock, and somebody please tell me where the selling is going to originate. Outside of some external event, like nuclear war, where is the decline? Even terrorism, politics, budgets, currency debacles, China’s implosion, and a world economy that is shrinking from excessive debt, haven’t been able to dent prices more than a frickin’ day. Show me all the chart porn you want; show me all the “ratios” that say this can’t go on and continue; and throw at me every useless economic statistic the Department of Unicorns & Fairy Tales spits out ad infinitum nauseum; none of it means “diddly squat”. Corporate earnings? Who cares? All that matters now is that central bank “A” is bidding and ramping the indices higher through buying during the thinnest and most illiquid hours of the day; something you would most definitely do if you didn’t care about price and wanted to get the most bang for your buck.
And of course, the clueless Twits at the FED, having boarded the “idiot train” long ago and have never left, view all of this with delight, cuz it allows others to pay for their policy goals. “Everything is F-ing Awesome Baby”! The fact of the matter is, your financial life is determined by a bunch of imbecile elites who’ve never left the faculty lounge, and will take no responsibility for anything they have done when SHTF, which it will eventually do in a very big way.
So, here we are pre-market open a couple of hours, and already I’m seeing throughout the financial press stories about “stunned & bewildered” traders worldwide, waking up to another idiotic ramp up on absolutely nothing except central bank buying. EXIT QUESTION: “Why even have a New York session; what’s the point? Everything is being bought and run from Tokyo, London, & Zurich … what purpose does the NYSE serve really? Just another place for New York wives to drop the husband off someplace “safe” so they don’t hang out in some bar somewhere and get in trouble, plus it saves on babysitting costs. Cuz all we really need now is a “Central Bank Fix” in the morning and we can all go to the beach for the rest of the day”.
Turning to today’s market … “whew, another higher open; no laws broken today”! Another nothingness first hour with every M1 down treated as the end of a bear market … I haven’t a clue when this stupidity of buying stocks at any price ends, but I can tell you if the morons bidding this stuff up don’t take their collective gas off the throttle soon, it’s going to be an ugly mess going down … and that I know for sure. It’s simply open higher, go higher, and stay higher with no moves down of anything greater than about 20 points MAX; goose the crap out of it overnight, and rinse & repeat. That’s the new collective mantra from Wall Street … love it, hate it, that’s what it is.
About a half hour from Noon in New York, and some trouble brewing with GM … seems they fudged emissions data with trucks … that’s causing a reaction in the Dow30, and now we got out first crack in the dam. Could this be a catalyst for some short term selling, in what is an extremely extended market? We’ll see. Well, that lasted all of 30 minutes, with 4 M1 spikes down and the rest basically sideways … but not to be outdone, the manipulators get even when moments later with the market at 21064, in literally 1 second the market is up at 21085 … seems somebody [and we know who that might be] decided that would be a good time for some very large bid blocks to be placed, and the rats scattered rather quickly to get in front of it.
Now, of course, we’re in “chop city” … the market’s been stuck in a ±15 point range for the last 90 minutes. At least, though, with the GM news and a FED “trial balloon” via JPM that the FED wants to start reducing its balance sheet [tightening] in September, the market appears to have stalled, and momentum taken away from the upside. I don’t think they will do much this afternoon, but it sets the stage for some Friday morning “profit taking” tomorrow.
Overall, 2 scalp trades yielded some profit, but the action is far from conducive for hanging on to anything. This market is so over extended to the upside it isn’t even funny anymore … I’m not looking for some huge selloff, simply two-way somewhat “normal” action; without it, the market is very susceptible to very quick drops. My biggest concern is a very quick selloff I can’t recover from, and the quick up blasts we’ve been seeing become down blasts. With two-way action that becomes less likely, but we need to start seeing more balance in this market or else there is going to be hell to pay, and I don’t care if the central banks think they’re bigger than the market … if they keep this shit up of open, go higher and stay higher with no breaks, their hubris will eventually ruin and destabilize the stock market and they will find out the hard way their efforts were foolhardy. And for all of the day’s effort, here we are right before the close, notwithstanding the 25 point 2 M1 blast up from nowhere @ 15:45, only 9 points from the open bid price @ 9:30. As I said earlier, why even have a New York trading session; what’s the point?
I finally got Microsoft Excel tech support last night to admit my Office 365 software has “corrupted” files … so, they sent me via email the serial key to use after I download a completely new set of software; I’m going to do that tonight, and hopefully I’ll have it finished in time to post the PAMM spreadsheet later this evening. In any event, I’ll have it done by the end of tomorrow [Friday].
Time for the beach … the dog and I are outta here … until tomorrow.
Have a great day everybody!
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