“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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