“Technocratic Fascism” = World’s Central Banks + Multi-National Cos.
It’s a new day in investment finance … actually been going on since the start of 2015 when the Swiss made the conscious decision to stop throwing valuable, freshly printed “Cntrl-P” Swiss Francs to support the hapless “Super Mario” Euro @ 1.20, threw the EURUSD “under the bus” by letting if float freely, and instead started buying [to someday influence & control] all matters & types of global “Tech” companies in the NDX100 & Dow30 [specifically Apple & Google].
Throw away your old dusty definitions of a dictator controlling corporations that do your bidding ala Mussolini & Crew, and welcome to the new definition: the world’s central banks in bed with the titans of Tech, finance [via TBTF multi-national banks], & energy. Together, they can buy up as much as they want with worthless printed money and directly convert it into 1) more cash via higher stock price, but more importantly 2) amass stakes in global companies to influence corporate policies, while at the same time promoting policies domestically that the central banks want; namely, promote political agendas and outcomes desired by the financial elite. And as we all know, if there’s anything that bunches up the “big girl panties” of elites everywhere it’s volatility in stock prices of the indices, and/or seeing the price of gold go higher. Mission #1: “kill it … kill all of it”.
If you give it some serious thought, you’ll quickly realize in this equation everybody wins … except the Sheeple of the middle class, where all of the costs and risks lie … The bankers win cuz they make money being middlemen; the companies and their “trophy wife” Board of Directors win cuz execs & board members see their stock options skyrocket and make them wealthy beyond belief; the central bankers win cuz they throw the switches that make it all work, and when they leave the central bank either retire in complete luxury or go to work for Squid & the other boys … you, on the other hand, get no part of this … you get higher inflation, shit wages, more loss of financial freedoms, and become more of a serf each day that you live. “You know, cuz government cares so much … the only thing they care about is growing ever larger, more intrusive, and having more control over your life in every aspect you can think … all for the children of course”!
The “doom & gloom” early morning installment du jour comes of course via Zero Hedge [ZH], which never has seen a “stocks are overpriced & going lower” post it didn’t like, from Bill Blain. It’s not that I have anything against guys like this … it’s simply he’s looking at things from a dynamic that serves the 1960’s best … “by all means, let’s talk PE ratios, advance/decline lines, inflation/deflation mantra, Europe, PMI’s, and all the other useless crap … if you’re in the market and want to make money, the question facing you TODAY is how to deal with the SNB when they got 10,000 share blocks BID in Apple stacked higher than cans of corn at the grocery, and how do you trade this stuff? The other stuff is gibberish, and up and until it ever goes away [why should it?], you’d better address how you deal with this if you want bucks flowing into your pocket. And quite simply, these guys got their collective heads in the sand when it comes to this cuz they don’t want to talk about it, write about it, or discuss it. Why, cuz these aren’t stupid people?
And here we are about 2 ½ hours from the open, and stocks in the European session drifting ever higher; no doubt we’ll be 50 higher at the open on “fluff”, the usual quiet ramp we see on Sunday opens and during off hours when the manipulators get their biggest bang for the buck when there isn’t any volume and/or liquidity they have to deal with and they can quietly go about their business of ramping the price higher with very little cash or trouble from others. “If you were a prop trader for Squid, and had billions behind you, and knew what the order flow looked like, you gonna sit there and tell me you wouldn’t shove this stuff with a few million here & there to make some money when you know the SNB has your back in Apple & Google shares with there bids in place? Hell yes you are”! And so it goes and it’s part of the new battlefield you better get used to and comfortable with cuz it’s the reality the financial trading world finds itself … for better or worse.
And what happens some day down the road when the Swiss National Bank [SNB] starts telling the Apple Board … you know, cuz they are Apple’s largest single shareholder … what to do, who to hire/fire, what political beliefs to espouse, what product lines they think “appropriate” and which ones they don’t like cuz it might be counter productive to bigger government, etc., etc. right on down the line to total and complete totalitarian fascism? “Knowing Libtards & dumbed down recent college grads, they’ll be all for it cuz 1) Libtards love dictators & thugs, and 2) Sheeple just want to graze on grass and be left alone … gimme my iphone … now STFU and go away cuz I’m in my safe space now”.
Meanwhile, the Dow30 is at 50,000 + and all those who actually have a job worth having are richer … “and you think they’re gonna bitch & moan over the new technocratic fascism? Remember that Haitian land I got for sale [cheap!]”?
To be blunt about it, we’ve never seen anything like this in the world before; “hell, if Venezuela and Zimbabwe had played their cards right and joined “the club” not only would the other world central banks had bought their debt, they could have embarked down the same road as the Swiss! Imagine the two Marxist thugs Mugabe & Maduro [sounds like a law firm] grilling Tim Cook at Apple over corporate policies cuz they are Apple shareholders! God, that’s entertainment I’d pay to see”. Like I said yesterday, if everybody is on the Titanic, and it sinks, does it matter? All of these central banks supporting and propping up each other, all around the globe; meanwhile, some of them go shopping for stocks daily with printed money. “There simply is no downside folks; somebody enlighten me as to why it should ever end”?
Of course, back in the stone ages … you know, like before 2007, all of this would have been considered “tinfoil hat” conspiracy BS; no serious financial commentator, business publication, academic institution, or newly minted MBA grads would harbor such outrageous thoughts or desires; today? Nobody cares.
The “hip”, educated, well off Sheeple have their iphones … their imaginary grievances, college football, rising 401(k)’s, relatively cheap mortgages, music & entertainment, and eat out regularly at places like P.F. Chang’s; “they wouldn’t care [probably not even notice] if the entire country were made a “soft” dictatorship and the constitution shredded. They wouldn’t lift a damn finger. It’s all about money, and give access to money and rising stock prices to the upper middle class and beyond, and you can do anything you want with this country … ANYTHING CUZ NOBODY IS GOING TO STOP YOU! “Oh wait … I’ve just gone outside, here in the Caribbean, and I’m looking down the street and I’m trying to see if I can find the angry protests over stock indices continued rise ever upward … Damn, once again they come and go before I can ever join ‘em … I made a sign and everything”!
Turning to today’s market … higher of course at the open … I mean, color me stupid, but couldn’t we just “occasionally” have a lower open? … you know, to fool the short sellers or some such bat guano? … Once you understand what’s going on, it makes perfect sense.
One hour into this mess and it’s … crickets; market is right where it opened with a little up & a little down, but no trading theme whatsoever. And here a little after Noon, it isn’t any better, what with the only thing that has happened is a break of about 25 points followed by nothing. Simply put, it’s deader than a door nail and there isn’t a damn thing to do; SP500 is even worse with New York session range of a little over 4 index points, top to bottom. In other words, no rallies, no breaks, no nothing but a flip of a coin what the next tick or the next minute will produce … a complete random clusterfark where nothing means anything cuz all there is are bids in Apple, Google, Microsoft, etc., and nobody will hit the bids and the bids won’t move higher they’ll just sit there; until probably tomorrow when they’ll raise them and we do this again with a higher opening again. Welcome to the new Technocratic Fascism”!
Here in the early P.M., a slight break that leads nowhere; just no bounce either via a signal or just a retracement worth getting long for. Market is below the New York open, so we have to be careful about the breaks we buy; they should be the 2nd or 3rd breaks in a series that’s going somewhere, not just sideways and then all of a sudden breaks down with a “one minute wonder” M1 that becomes the break for the move.
Ok, it’s about 90 minutes from the close, and we’ve been in a mind-numbing ± about 12 index point range after the M1 “wonder” down draft @ 17:25. The market hasn’t rallied the entire day, and it doesn’t look to start now this close to the close; it might, but it’s gonna do it without me, cuz there isn’t enough time nor enough action to get me in this right now, so no trades today. These very tiny little breaks [-20 points or so these last days] aren’t enough of a down side break to hang your hat on for a nice rebound; that comes with a lower opening after Europe disappoints and then moves lower in New York right out of the gate. And, we haven’t seen anything like that for at least 2 weeks and probably longer. I’d love to trade this stuff, just that there isn’t anything to do that makes “macro” or “micro” sense when it crawls sideways like it’s doing today. Hopefully, tomorrow sees better action; we sure could use it.
PAMM/MAM spreadsheet directly below.
Time to hit the beach … I’m outta here … until tomorrow.
Have a great day everybody!
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