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Thursday, July 13, 2017

IS FINANCIAL NEWS JUST ONE BIG LIE?

“Ahhhh, the wisdom of George Costanza!”

It won’t come as a big shock to anybody, people worldwide desperately want to believe their stocks are a bargain and deserve to go higher … much higher; if not, why hold them at all? To this end, the entire global financial apparatus is instrumental in perpetuating whatever they have to, so that people continue to believe. When both institutional & retail investors and traders “get wind” that there is some kind of breakdown in either the structural nature of finance or there are psychological political reasons to be worried, then and only then will you see a sustained bear market over any extended period of time. EXIT QUESTION: “Will CNBC or Bloomberg ever report and cover these types of conditions and “pass it on” to you via their biased reporting”? I’m not at all convinced they ever will; after all, they are owned by giant corporate conglomerates with deep ties to government and various special interests. Why would the powerful, rich elite of the world want to see their wealth dissipated through their very own media?

Finance never stands alone, like some island that is unaffected by the political environment it finds itself in; it is very much affected by the whims and desires of the ruling elite. I’ll simply offer as proof the unwritten rule of CNBC for any guest, which is “do NOT ever bring up the “Plunge Protection Team” or its various maneuvers in the market to prop prices, or you won’t ever get invited back”! Anybody that has ever been invited has been told this in no uncertain terms.

As mass media in the modern age has developed from the early 50’s to present, one truth [oddly enough] has held firm and proven correct more than anybody wants to admit; Uncle Adolph below explains.

“Every rat in government knows it to be true!”

And while everybody in the world heaps scorn on “The Third Reich”, and rightfully so, in at least one respect every government since then [that would be the 1930’s for you Obama voters who think history started in 2008] has learned a valuable lesson. That lesson is simply this: a media darling [Hitler at the time] was sufficiently able to convince the stalwart, upstanding, strong & independent German people to make him dictator for life. “In essence, every politician’s dream since then from DEMS, REPUBS, and thug dictators everywhere”. Hitler’s chief propagandist was simply an evil genius; Joseph Goebbels had 2 Ph.D.’s from prestigious universities, and deeply understood human psychology and the need for “people to believe”; and boy, did he ever get them to believe. They believed so much, that even after the Nazi’s were defeated, General Eisenhower had videos of the concentration camps made and also required the local citizenry to visit the death camps at Buchenwald & Ohrdruf to see with their own eyes the evil of their deception. “You gonna believe me, or your lyin’ eyes”?

Well, minus the death camps, what has the FED force fed the financial community with since 1913? In 104 years, the U.S. Dollar has depreciated over 98%; IMHO, the only thing that has saved the U.S. from being Venezuela is the rise of the “petrodollar” in the Nixon years, thanks to Henry Kissinger. If that ever changes, the U.S. is over in about 15 minutes.

The sad fact is, there isn’t a one of us that can truly escape the clutches of the FED; we all have bank accounts, brokerage house accounts, mortgages, credit & debit cards, etc., and the pablum of “Everything Is F-ing Awesome Baby!” constantly and consistently beat into our heads by the MSM financial press is both sickening to me, and a constant reminder of how truly corrupt our government and press are in the art of propaganda. “Gosh, I wonder where they got all these ideas”? Is it any wonder then, that eventually somebody would come up with QE and the need for “The Plunge Protection Team” [PPT]? Of course, it’s for your own good don’tchaknow?

Turning to today’s market … not much overnight with the Dow30 in a very tight range … the very early DAX30 selloff had zero affect on U.S. indices, and volume has been very light … at least for now, this has the look and feel of a “Flying Wedge of Death” [FWD] kind of day; I’d like to see some kind of “profit taking” [thank you Bob Pisani, CNBC] to start the day, and then the rally can come. We’ll see.

Grandma Yellen at the Senate today; picture below captures the action.

“This Senate committee is now in session!”

And from the group photo, it rubbed off on the Dow30, cuz what we got so far today after 2 hours is a joke; “Flying Wedge of Death” seemingly making yet another appearance in today’s trade. And once again, the correlations between the SP500 and the Dow30 completely breaking down; they go in different directions, they go in the same direction, they move the same. Go ahead and flip the coin.

It’s 2 hours later in early afternoon trade, and whadda we got from earlier? Try zero … literally … no, I’m serious … maybe 7 – 8 points if you caught it perfect in the last couple of hours … yea, it’s summer and the markets act like the beer is hot and the women cold … but geesh, this is pathetic. The one move of the day in the Dow30 worth capturing happened so fast off the low, and of course in seconds it rocketed while the SP500 did zip … by the time the SP500 moved up at all, we were already 20 off the low.

In the larger scheme of things, the news from the “Faculty Lounge” crew yesterday on interest rates makes getting [outside of bombshell political news, where Trump is to be impeached in 5 minutes] some serious technical breaks tougher … ones not associated with politics, probably at least until the fall. At this point in the Calendar, usually late summer does not produce downside fireworks. In 2015 we got the China devaluation that caused a flash crash the following morning, but outside of that, nothing much historically.

The key, as always, going forward is not news, lack of news, more news, or anything outside of the “setup” … meaning, how markets are positioning players [institutional & retail spec] and their positions, where the key stop levels are at [both buy and sell], how the day starts in Asia and the market is treated overnight [“upside vapors” anyone?], how we open in New York @ 9:30, and the importance of the opening aqua horizontal line … “THIS IS WHAT MATTERS”! All the rest put to you by the financial MSM is nothing but one big lie after another.

We find ourselves in the “Central Bank Paradigm” of trading; I don’t know if anybody else saw it the other day over on ZH, but the CTA [Commodity Trading Advisor] & traditional hedge fund industry are having their worst year since 1987 … yup, 30 years; they called it the “Quant Quake”, and for those who want more in depth analysis, the link is directly below.


Basically, the premise is that everybody is getting caught in 3 “sigma” to 6 “sigma” moves that happen like lightening, and then everything dies and there is no way to recoup the losses from the trade, and then it’s on to the next disaster; “gee, anybody I know who’s been saying this for months”? And, it is leading to horrendous losses, and the closing of funds and/or retirements of key industry players that have been around a while. “Again, where have I heard this before”? I shouldn’t have to remind them, cuz they should know this, but patience and discipline are key … and many of them got neither.

And while Grandma Yellen giveth, another FED Pie Hole today taketh away … Brainard says “Asset Values” [a/k/a “stocks” … duh] look “a bit stretched”. Seriously, WTF … and sitting in the faculty lounge with the other clueless Twits, how does she arrive at this? Women’s intuition? Ouji board? Cab driver in Las Vegas? Now, you got to ask yourself, “why the hell do they send out some Fed Pie Hole to say this the day after Yellen drops the “MOAB” interest rate news”? IT’S CALLED CENTRAL PLANNING … IT’S THE PARADIGM WE WILL BE IN UNTIL THE REVOLUTION COMES TO TAKE THEM AWAY. And that my dear friends, isn’t gonna happen anytime soon … you simply have to understand the “rules of the game”, and everybody here knows the rules … “IT’S THE SETUP STUPID”!

Thank God, they mercifully close this stuff in an hour; good luck with any trade getting outside the spread! Just another “Doji”, “Flying Wedge of Death” 59 total point range day … ho hum. Of the last 9 trading days in the Dow30, 4 of them have been “doji” on the daily candlestick chart. Just another day of going nowhere fast.

One trade today off of the low, didn’t get the greatest fill getting in, but everybody here knows the drill with the scumbag LP’s, so no need to be redundant with a slippage tutorial … it wasn’t that bad, but still … anyway, once I got in of course comes the Brainard headline, and when it won’t move … well, time to liquidate cuz this isn’t something I want to fight the rest of the day, unless I get lower price from my liquidation point. So, another profit scalp on a day that’s turned into a complete “nothing burger”.

But of course, literally minutes to the close, and time to blow the shorts a “new one” … couldn’t move a nickel to save its life for 4 hours and now in 3 minutes 15 points to the upside on vapors; oh yes, tell me again how the market isn’t manipulated. Hahahahaha. Onward & Upward!

PAMM spreadsheet directly below.


Time for the beach … dog and I are outta here … until tomorrow mi amigos.

Have a great day everybody!

-vegas

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