We managed to survive the week. Emotions are wound tighter than they have been in quite some time. Of course this is well deserved. Everyone is in disbelief and quite possibly the central planners pushed the envelope a bit far this time. Why is the big question? My thought is that they are trying their damnedest to suck the sheeple funds in for one last mega scalp (wealth transfer) so they can exit as flush as possible.
STB has been on the fall for quite some time and anticipating a pretty nasty move coming. The news bits and bytes have been increasing in intensity looking for a pretty substantial move to come. the latest - ""Exhibit 5 shows just how excited stock investors seem to be getting over this prospect, especially in relation to their fixed income peers. But, this is almost always the case when animal spirits get going. The last time I pointed out such a divergence (October of last year), the SPX had a swift 10% correction over the proceeding 3 weeks. I have no idea whether we are likely to get such a correctly immediately, but I sure can’t rule it out and I am pretty confident you won’t be able to get out of the way unscathed." The Stock Ramp Is Just More Deja Vu "Insanity" Warns Morgan Stanley | ZeroHedge.
The FOMC chart has worked wonders. Next week we have FOMC, AAPL and the Greek PSI issue. Once all that is settled, I expect the market to sigh at a minimum. Remember it will be the form of the fall that I will be watching to see if it has the depth and breadth that should transpire. Some of the 10% numbers could actually be conservative. If my SPX right shoulder is playing out you could be staring down a 400 to 600 point move here. We've all noted that the Fed is afraid of something here. It is apparent. I think you have witnessed stealth QE as the Fed has used those "tools" they said they had if needed.
If you want a chart I suggest you see the posts from Wednesday morning on. They are loaded with just about anything you could want SPX related.
Now a couple of must read and must see things - This is freaky scary stuff relating to MF Global.
Warren Pollock on Max Keiser Regarding Bank Holidays - YouTube
Now read this and start putting the pieces together (and don;t freak out) -
Obama Pushes Hard to Protect Big Banks from Fraud Prosecutions … But We Can Stop Him
Look at this - Those diags have been simply nailing everything.
One more thing - Stephen Colbert Breaks Character And Endorses Ron Paul - YouTube
Enjoy your weekend.
GL and GB!