Almost every day here at STB some sort of fraud, corruption or market manipulation topic is covered (well, OK, I cover it every day, but that is besides the point). I do this for a good reason, to expose you to the new reality. I do it so you know that the system has been hijacked by the corporate elite and everything now works to serve them, for if they don't survive - no one will.
Did you catch that? We the sheeple are no more than sheeple, and without our corporate overlords the world will cease to exist. If the world ceases to exist then government ceases and we can't have that either, so the government caves to the special interest lobbies at the expense of the sheeple. POOF, we the sheeple have lost all power and become little more than debt serfs to serve the system.
This goes back to before the blackmail bailouts of Paulson and Co of the TARP days. The lawless rule of Wall Street really began with Clinton, Greenspan, Summers, Rubin and a young Geitner in the 90's (some will claim it started with Reagan, and I can go for that). Greed came to rule with the gogo 90's when people were making so much money that no one would dare step in the way no matter if what they were doing was legal or not (see The Warning). (Note who BO picked as his financial chiefs out of the gate in '08 - Geitner and Summers) (Also note who got one of the biggest bailouts on '09 - Rubin at Citi).
This lawlessness led to the bust of the market in '00, again to the mortgage crisis of '07 and will occur again with the debt bubble now. What is so astonishing is the power of greed which has led to the complete lack of morality in DC. If money is being made, get the hell out of the way. The banksters because of the threat of collapse in the quadrillion of unregulated CDS instruments now control everything. If their lawless, unregulated mess goes kaput, so does the global economic and financial system. We're being blackmailed by the banks. This is the new reality.
For this reason there are no laws that can stop the banksters from doing anything they want. If you missed it I suggest you watch The Untouchables from PBS. I also suggest you look into Lenny Breuer the (now former) Assistant AG to Holder, who basically stated that they could not prosecute anyone on Wall Street because if they did the financial fallout would collapse the system.They can't regulate the system, cause if they did ... well, you get the point.
Even today the courts, yes the courts, are held hostage to the threat of financial collapse. Can you believe that we've evolved to a point that legal matters are now decided by NOT what is right or wrong as determined by the law, but by what is financially viable? I suggest you read Fraudclosure Fail where even the Florida Supreme Court admits they can not prosecute the banks by the law because if they did the financial crisis that would result would be devastating. Get that? The law no longer applies. This is how far we are down the rabbit hole.
And there you have it in a nutshell. We're all debt slaves to a corrupt system that will do whatever whenever it wants no matter the consequences to society. This is the new reality. You need to invest accordingly. Market crash? Not on their watch or at least (as I called in '09 when I first started the blog) not without and external "event" that will rip control of the market from the Fed. They are in the process of total annihilation of everything financial as we know it. The currency wars reminiscent of the 30's are starting to heat up. Inflation is coming and it can already be seen in food (horse meat and pink slime) and gas prices.
We're close folks and they know it. Do you ever wonder why the DHS has purchased over 1.4 billion rounds of ammunition for domestic use? (and they recently are adding to that total and added another 7,000 AR's to their inventory) You should read It Has Happened Here if you want to learn about the new police state you live under. The government knows financial implosion like the world has never seen is coming and it is not far away. They are preparing (with enough bullets in inventory to put 5 in each and every one of us) for the worst. I hope you are preparing accordingly as well.
Do not be fooled by the "all is well" propaganda from the state controlled media. Yes, state controlled - did you not recently hear about the drone base in Saudi Arabia that the CIA insisted the media cover up for the past two years - and they complied! All is not well and you need to be awake to that fact and begin preparing for the worst if you have not already.
On to the completely unregulated and manipulated markets -
Daily SPX - I covered BPSPX and CPC on Wednesday, please see those charts for the best dire stance I can throw at this market - excluding the weekly and monthly divergences and the bunch chart. This chart is primed (has been for a while) for a descent corrective if not more. But, as usual, I await a catalyst, cause nothing is going to stop them.
Minis 30m - Backtest of the white triangle support after the triple top (soon to be quad) suggests something bad is about to happen. On the other hand, if recent trends hold, the Fed is underthrowing (bear set up to fail just like every right shoulder of the past three years) the ascending triangle and setting up a breakout on a mini short squeeze. I'm stubbornly sticking with my 1467 to 60 target area, but if 1511 gets eclipsed, 1530 should be the target. This is a beautiful short setup. One that in years past I would have been calling from the mountain tops, but with the developments discussed above and $85 billion on POMO coming monthly to support the fraudulent markets - you short it at your own risk.
Have a good weekend.
GL and GB!