Wednesday, July 7, 2010


Quite a couple of days we have had here recently. Apparently the ever resilient American public has been shopping like never before (well, that's what they want you to hear - so if you have not been shopping get out there in a hurry!). I know for a fact that PCB (Panama City Beach) was pretty busy with people soaking up the sun, emulsified oil and Corexit over the holiday weekend. Apparently these sheeple don't get it. The government directive to ignore all personal safety measures and re-max out your credit cards is not reality. It is not real. WAKE UP AMERICA!

In Market Rallies as Retail Sales 'Purportedly' Rise at Fastest Pace in 4 Years; Signs Suggest this Oversold Rally will Soon be Dead  Mish probes beyond the Government directed headlines to dispose the myth that you have been spending like a mad men and according to Goldman and Fed economists the double dip is not a reality but a myth purported by bloggers that don't have PhD's in economics. Mish notes, "Not only is it easy to beat record low comparisons of a year ago, same store sales are rising in part because stores are closing like mad." Do not believe the hype machine. They are gonna keep throwing shit like this at you and will keep you in the dark till it is to late.

You see, you live in America. The greatest nation on the face of the earth. We have been given by our creator the right to liberty, justice, the pursuit of happiness and unlimited entitlement and benefits supplied by our providers in the US Government. This is evidenced here in this post by Mish Illinois Construction Workers Make $50-68 Hour, Strike for 15% more. Never mind that the State of Illinois has a $13 BILLION budget deficit. That is not important. What is important is that our individual entitlements expand to infinity and beyond. What is important is that I get my share of the American dream entitlement state. Denninger covers this in Ill-Noise Is Broke But Gives 14% Raises?  

This is fucked up. We're crossing the event horizon and about the be sucked into the black hole of financial abyss. People don't get it. The sheeple are ignorant as hell and believe everything fed to them by the government controlled MSM. We need to be SCARED AS HELL right now, cause the Banksters and the Fed are taking every ounce of wealth left in this nation and the government is feeding them your current and future tax dollars to hide the fraud and lies that have apparently taken a perpetual reality. Do not believe the The Fallacy Of "Record Corporate Cash" and how they will be coming to spend and save America. 

Who cares if half the homes in America are underwater and that the FDIC, Social Security and Medicare are bankrupt, tax revenues are at historic lows and that the national debt is so out of control that we'll have to raise the debt ceiling AGAIN later this year or early next. This is some really screwed up stuff, and yet we continue to move along like good little sheeple while were being robbed and raped.

Welcome to the first stop on the way down. We'll be heading back up now to drop off those that want to remain bulls in perpetuity. Guest Post: "So Much For The Market Being Cheap" Charting A 50-75% Downside Case In The S&P is the most concise post I have seen comparing this period in history to those recessions and depressions in the past. "It seems to me that the market is now recognizing that the game is up; no amount of additional money, bailouts or otherwise can prevent the system from collapsing under the weight of all the debt that has been allowed to build.  That's why it seems as if the far end of the black line is on the cusp of doing what the red line did on the left side of this chart in 1929." that is a severe move south.

Earnings season is a week or so away. The CNBS hype machine is about to get cranked into overdrive (along with the never ending accounting fraud and pulled forward demand) to get you fired up about the recovery and the FACT that all is well. Never mind that death cross that just happened. It will be erased by the algo bots in a week or two and we'll - the blogosphere - will get another brow beating by Dennis Kneale about how stupid we digital dickweeds are. The current H&S is being canceled out at this moment. Do you think they can let such traditional TA signals get in their way? Ph-lease.

Technically the dailys may have turned the corner and (as Rich Cash has been screaming) the pop may be upon us. I have placed buy lines on the daily charts. I will be watching for the RSI to run to the divergence line, and I'll really be watching the weekly charts for the upper RSI TL to get set for the rest of the fall (then we can get some sort of time frame for this round of devastation). I'll note that this market is now a fools game to call and it will devour the best TA has to offer as it is a rigged game. 1090 is my first SPX target. It all depends on the fraud and how well they can misrepresent earnings this quarter. Careful in this fools game. It can bite you.