Amazing that on the 18th we're gonna eclipse the debt ceiling yet again and this is not headline news. I guess it is a non-event when everyone knows it is gonna happen, and we'll just continue to print more money to cover the excess. Pretty amazing stuff how financially complacent we've become. Just spend, spend, spend and whatever you do, no matter the cost, do not stop the greed train. Consequences? What are those? Pay the piper? Why? When you print fiat from thin air it is free right?
The Hilsenrath rumor mill has begun again in earnest. I guess the Fed needs something more than steady QE to motivate the markets. Why not shake things up a bit? If the carrot in front of the horse goes stale, you need a change. So you threaten to take the stimulus away creating a bit of fear, then you give it the old. "just kidding", bring things back to normal, crush the shorts again and wham-o! new highs come yet again.
Bottom line is things are spinning out of control at an increasing rate. You are starting to see serious signs of desperation financially and politically. It appears they are starting to get stuck in the many webs they have woven. The budget crisis, Benghazi and Syria are topping the list of things we need to pay really close attention to.
I believe we're really close to a top in the markets, but the distractions they will need to turn our attention from the collapsing markets are not quite in place. Boston was a big event and good trial run, but it was not large enough to spark the nation into protectionist, raw nationalization, praise the homeland mode they will need like after 9/11.
They're not ready for the "event" quite yet. They have done a good job thus far preparing the police state, limiting our ammo and controlling the MSM. They are close, and I believe they are starting to press a bit knowing their time table is shrinking. I suspect we'll see a larger domestic terrorist attack very soon.
On to the markets -
It is what it is till it isn't. Friday I actually went out on a limb saying that shoring here might be a good idea if done in small amounts, with protection and not thinking that the top is set quite yet. So far so good as the minis actually gapped down about three points Sunday night.
Minis 15m - Price holding the long term green and white support diagonals. 1623 is the main support number for today. There are vast spaces of nothing both above and below price here, so if it were to start to wonder in either direction the potential for a decent move is there.
SPX Monthly - Price topped months ago. Say what? Well, IMO everything beyond the blue line is not real and the move beyond the black line is pure fantasy. That is the technical take. Reality states that the whole move off the 2009 lows is nothing but total BS.
More to come below as usual.
Have a good day.
GL and GB!