Small, insignificant, meaningless, all terms that are associated with the Cyprus crisis in the backs of the minds of the elite. Lab Rat may be a more honest term. Cyprus, being the smallest of the small has been reduced to little more than a modern financial theory experiment. Well, not exactly a modern theory, more of a throwback to socialist dogmas and precedents. How'd they work then fellas is all I have to ask?
These poor people. Like the old lower than pond scum jokes, these people have been kicked to the curb by the financial elite and are now the poster children of the latest debt bubble. Those awake know that this crisis is the worst one yet, and it will have to end at some time. Someone had to be the first to test out exit strategies for the crony capitalists. Congratulations Cypriserfs, you were the first one left without a chair at this game of musical bailouts.
Raw pure theft, there is no other way to describe the situation. At one time this would be an act of war on an ally of the US. At one time we'd actually defend a nation under this type of oppression. Not now. Or, well, not now, for several good reasons. First and foremost (IMHO) it is the Fed (our personal banksters) that is truly the ring leader in this crisis. It is our government that failed to regulate the banksters that allowed this crisis. London led the uber rehypotecation ring. The banks now control most of the world's governments via blackmail (TBTJ). Thus we idly sit by and watch the carnage.
Everyone got cheap and easy credit. Politicians around the globe could not turn it down. You borrow, you build and improve, citizens feel like they are really wealthy, then you can't pay it back, banks take over assets and they win. Was this the plan from the start, or was this just the natural result of greed and stupidity on the part of the governments and sheeple of the globe? Either way, the banks win and own everything.
What's to come of this? Well, personally I'm quite surprised at the level of tolerance the sheeple have been demonstrating. Raw theft of your life savings from your bank by a government that is not of your country? I don't know about you, but to me that would be a great time for vengeance. Forget justice, that will never come. I honestly hope that some desperate actions by a few can lead a nation in revolt of what's going down right now in Cyprus. If not, that will only give the banksters the green light to move to the next and the next and the next looting even more savings.
The two big things I see - First, I was half right yesterday (they middled me). They pushed back the bank openings to Thursday. This leaves a one day window before the long weekend. The most religious holiday of the year may help to keep a lid on things at least till Monday. I do know that they will have to open the banks at some point in time, and when they do that is when all hell breaks lose. I would suspect subsequent closings, because there will be significant demonstrations, lack of funds and a need for military (possibly UN) presence at each bank from now till the banks ultimately fail.
Second, did the Ruskis and other elites get their money out first? If so, this really ain't right. I suspect we'll never know the truth about this.
Something else, is this all about war? This is an angle that some have hit on that I don't necessarily get. Why pick on Russia? We have enough troubles elsewhere. I know this will all end with the next great war. No financial crisis of this magnitude has ever not ended in a major war. Why that is an angle, I don't see. Plus, you know my opinion on this, Russia, China and the US have already divvied up the globe. They know how the next war will end and who gets what.
On to the markets -
It is all about Cyprus and nothing else. Wait and see mode? I don't think so. More like wait and implode. You have to be an idiot to have any money left long in anything at this point. Two words for those not willing to take it all out now or not going the PM route - Money Market. Bonds and stocks are gonna get hammered. There will be no place to hide. You need to be in pure capital preservation mode now. Forget about making money and start thinking about preserving it. No bonds, no stocks, just cash (PM, ammo, etc... aside). Oh, and of course, no one could have seen this coming.
Patience is still required. The last three big dips were all fended off by the Fed, PPT and Potter. They control everything. Remember, NOTHING IS REAL anymore. You can not forget that point. It will become real again one day and the bears will get their just rewards. Till then, remain calm, prepare accordingly and let their game come to an end.
I still subscribe to the fact that they like to move the markets up into holiday weekends. Can you find a better time than now for the Fed to at least keep this thing elevated with EOQ prints going into a long holiday? I don't think anyone will be pissing in the punch bowl till the Cyprus banks open Thursday or till after the markets close Thursday at least. Heck, they still got that all time high to get out of the way on the SPX. Today is their last shot at that IMO.
Minis 60m - The best way for me to put this is every line you see on the chart is in play. Friggin channels everywhere. Old, new, they all seem to have diagonals that are still relevant to price movement. I've never seen anything like it. I'd be watching the pink upper resistance (1553) at the open. If that goes the upper green channel resistance (1563) is possible. The best and IMO most likely move would be for a consolidation day where price remains below pink and above green channel support as everyone digests the Cypriserf banks opening tomorrow. How can this thing be going up? How can the futures be green? LOL. that's beyond my comprehension, but they are (rigged).
No need for an SPX chart today. If you want one, here you go. We're beyond charts now waiting on the inevitable. the charts are there. The catalyst has hit. All there is to do now is wait on the event.
As usual more to come below.
Have a good day.
GL and GB!