Thursday, May 2, 2013

Morning Charts 05/02/13 SPX /ES

I love reading things that sound like a summary of my stuff from the experts.

"One possibility for the markets to reverse has always been some grand event but another is just the economic deterioration that wears away at the markets as current levels cannot be rationally supported. It is not just the Law of Diminishing Returns which is coming into play as the central banks create more money but the effects on the consumer of seriously declining available cash to be used to purchase goods and services."

Of course they are far more eloquent and polished, but then like I give a flip. It is the content that matters, and I believe my readers appreciate the relaxed, informal and truthful nature of my posts (feel free to insert your description below - we could have a good time with this).

That was from First Euphoria, Then Reality on Zero Hedge. STB has been discussing the mentioned "event" since '09 when one of my very first predictions was that it would take "and external 'event' out of 'their' control to bring this market down." And of course you all know that STB has been discussing the diminishing returns of QE on the markets for well over a year now. 

Predictions, schmedictions. With the ECB rate cut we get to see yet another bankster trump card played. Why it took them so long to decide to charge themselves less money is beyond me? Were they making too much money off themselves? I don't get it. I guess the proper term would be 'circle jerk', and the ECB in this case is the pivot man. Bottom line dog and pony show, lipstick on a pig, describe it as you will, this is nothing more than another form of extend and pretend to keep the banks life support machines running at full tilt.

Trickle down? This rate cut is to benefit you, the sheeple. Ha! The only thing flowing down to the sheeple is misery in the form of increasing austerity, inflation and more capital controls as the rape of the middle class gets stepped up a notch. This is a move for the media. A move that few sheeple will understand and will be spun as something they are doing to help you, the little guy, out. Don't be fooled. It, as everything is, is all about them, their profits, bonuses and survival, not you.

On to the markets -

Top, top, top, here we go, LLD (not knocking you Souper), I get it. I hear you. I see it as well. The problem is I have seen this crap for four years now. I have preached follow the Fed for what seems like ages now, and that has evolved into the two P's (Patience and Prepare). They remain in complete control of EVERYTHING and do not forget that. What has to happen does not. Reality no longer exists. The markets at this point are 100% rigged. You are playing against a dealer that can hit an ace whenever he needs one (and there are an unlimited number of them in the boot). Remember tow things, TBTF and TBTJ -

We have reached the over a decade 0% returns triple top with the dollar off 30+% from the '00 highs and interest rates artificially being shoved into some deep dark hole in the ground and about to go negative. There is is in all it's glory below. Just nasty, Mrs.Jackson nasty. I still contend that TA will always be right, but this situation is not 'normal' by any means. We've never experienced a time like this where the CB's are literally fighting for their lives and in the process attempting to literally steal everything from everyone.As stated over and over again, the markets are their main illusion to give the appearance that all is well, and they are all they have left standing between them and total global economic collapse. SPX triple top -

SPX Daily - 1600 still looms and I will discuss downside targets eventually, but not till I see some real progress. That daily reversal candle yesterday was a good start, but we've seen these before haven't we? There is a gaping hole from here to 1470 with only 1510 and 1490 support in the way. The box would be a nice target area (in price only not time).

Minis 4hr - Major support is gone. The blue rising channel has busted, and so has other diagonal support. There is nothing left but a breakdown here. Of course, that is what we all see, but times are different now and you should not expect anything you know should happen to happen. I'm not saying it won't break down. It should by all accounts. I'm just saying that you need to see it happen first. Let the play come to you. Remember they are desperate and know that they can not let the markets fail.

Trust me, no one on this planet is a bigger bear or more of a total doomsdayist than me, but we can't quite yet put the cart ahead of the horse. Tired, diminishing, worn out, figured out, out of money, technical end game - we're close. We just have to let this thing play out. How many times have you been right here, certain of the top, this is it and have your nose rubbed in it over and over again by the Fed? Calm down! Let the play come to you. We've had the catalyst, Cyprus, now we just have to let the burning fuse make it to the bomb.

Patience and prepare my friends. The two P's

Have a good day.

GL and GB!

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