Excluding the markets for now, the most important thing I found this weekend was U.S. Repeals Propaganda Ban, Spreads Government-Made News To Americans. In this post I learned that, "For decades, a so-called anti-propaganda law prevented the U.S. government's mammoth broadcasting arm from delivering programming to American audiences. But on July 2, that came silently to an end with the implementation of a new reform passed in January. The result: an unleashing of thousands of hours per week of government-funded radio and TV programs for domestic U.S. consumption in a reform initially criticized as a green light for U.S. domestic propaganda efforts." Apparently, we can be fed whatever they want to feed us, how and when now without any prejudice.
That only makes sense. I mean when living in a time when in a TBTJ environment, they really need to be able to tell us any story they must in order to keep up buying their BS about recoveries, constitutional rights and a rapidly failing economy that only survives on a increasing debt on top of already unsustainable debt. I suggest you read Bill Black: The Banks Have Blood On Their Hands. Lies on top of lies are the new foundation of everything financial.
"So we already have the insanity of derivative trades in which both of us book a gain because we have different evaluations for the asset. So we have phenomenal paper gains that cannot be true. When the markets no longer trust each other, then those kinds of transactions do not work anymore, and there is no liquidity, and you are in the equivalent of trying to sell minority shareholder interest in a privately held corporation. How is that going to work out for you? Ever tried to do that?"
And for the next round of lies and propaganda we need to look no further than Syria where it was Assad that originally used chemical weapons, right? Or was it our rebels? That is immaterial as the moves there are escalating. Israeli Subs Destroy Russian Missiles In Syria; Russia Holds Largest Post-Soviet Military Drill. Let's not even get into the whole M Brotherhood situation and Egypt. That is a whole nother mess of lies.
And now on to the biggest lie of then all -
The markets - What to think here? China just nailed their latest lie on GDP. Rajoy would never tell a lie or redirect euros, so Spain is all good. Earnings fibs are rampant (think AA and the lowered estimates and hurdles). Taper is OFF. Shall I continue? Let's not and say we did, OK? Bottom line - all is well - until it isn't.
Daily SPX -
SPX Daily - A bit closer look. Note the 8th divergence in the sequence and all the failed reversal candles.
Minis 4hr - Not much to say. Once over my second major target of 1635 I said a 17 handle would more than likely be in the equation. I hung on till the pink upper resistance busted and then the backtest failure of the long term rising brown channel support. It's all gone but the 1685 top now. She's overbought and the dailys above are showing negative divergences. Not sure why that matters in a market that can not fail under any situation, but let's pretend shall we? That's apparently what we're supposed to do.
And if you have not seen the talking heads in action (This lady must be up for a CNBS interview) then take a look at this. It is funny, but then it isn't. Just proving talking heads will regurgitate anything put in front of them and you are supposed to believe it.
More to come below, I'm in the office for a while now.
Have a good day.
GL and GB!