Wednesday, September 28, 2011

Morning Post 09/28/11, SPX

Do you really want me to rehash the the Greece will be saved, will not be saved, will be saved, will not be saved, will be saved, will not be saved, will be saved, will not be saved, will be saved, will not be saved, will be saved, will not be saved, will be saved saga? I did not think so.

Heck the US is barely staying afloat. It just narrowly avoided the umpteenth government shutdown in the past three years. $15.1 trillion in debt and they want to must print more just to keep the doors open.

You are investing in a rigged market that reacts to rumors of hope of recovery and denials about reality. The market must stay at elevated levels to keep the illusion alive that all is well. Right now markets are teetering on the brink of another collapse. Well, they have been for quite some time. What is different this time than last? The debt keeps growing and they have done nothing material to address the underlying fundamental issues surrounding the crisis. They keep kicking the can playing extend and pretend like the problems will magically solve themselves.

Sadly the politicians have no control over this beast. Well, they could control it but none of them have the moxie that it takes to tame it. It would be political suicide to take the measures necessary to even begin to address the crisis, so they take the easy way out and continue to spend. This of course just worsens the back end of the crisis exponentially expanding the core problem.

It is only a mater of time before it all falls apart. I listed these post in comments yesterday and in the AD last night, but they deserve repeating -

Is The SEC Telling Us Something? Schapiro To Cut Global Circuit Breaker Thresholds By 33% | ZeroHedge

Brazil Government Preparing For Greek Default This Week Valor Reports | ZeroHedge

Thanks to RC for pointing this one out - Step Aside BBC "Trader": Head Of UniCredit Securities Predicts Imminent End Of The Eurozone And A Global Financial Apocalypse | ZeroHedge

This is quite concerning as well and is flying under the radar - "The Carnage...The Carnage..." - Presenting The Complete September And YTD Hedge Fund Bloodbath | ZeroHedge

SPX 60m - I threw this chart together to try and show the range and the double tops that have been occurring to set the divergences that have signaled proper short entries at upper LT 1220 resistance. Remember we are still dealing with EOQ and EOM prints and the rally the hedge funds are desperate for (mentioned in above link).

Minis /es - 30m -

Minis /es - 1m - This is the chart I will refer to in the comments today. I will also update this chart throughout the day if necessary.

GL and GB.

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