As discussed yesterday here on the STB comment board, "Our thoughts are that this will get resolved when either the market forces the issue with a big sell-off or when we get closer to an as yet unspecified hard-date as to when the US runs out of money." I'm positive that for the commenters and me, it's fun being days, weeks, months and sometime even years ahead of the "experts" quite regularly here at STB. We're a bit more crass and don't quite articulate as well as some of these media mouth pieces, we don't use the glorified, shiny and hopeful adjectives, but we do get the message across.
Yellen? Really? That's the best they could muster after all this time? So, what does that say about the global financial situation when literally the most powerful job on the planet is shunned or becomes an afterthought? How bout that, potus and Yellin. Nuff said here. LOL, we're so friggin doomed.
Sadly there is nothing to do but wait and speculate on price and the markets. Bears absolutely must respect the Fed and the uber dove that may come into power. I pretty much think that we've all figured out that Wall St. could suffer a great disaster, even be wiped off the map, and the markets would probably rally on the news from the back up systems wherever they are. It really is that far fetched right now. No, I'm not kidding.
The big deal, the one thing to pay close attention to, and the one thing that is most vital to all their shenanigans is the petro-dollar. I believe I'll start to focus on this a bit more as global events protecting this status should start to dominate the political landscape.
On to the markets -
Minis 4hr - Well, here we are. STB's second target off the top and Mendoza line or what I believe has the real chance of being the point of no return. Underthrowing the falling green wedge, hitting 1647 support and barely hanging on to the MAJOR red support diagonal. This is a moment of truth. Above I mentioned crashing the markets and a threat the sadistic administration may use to force the GOP hand, well, if that red line and 1647 go, the sell stops will get triggered and 1600 to 1574 come into lay and in a hurry. The markets must make a stand here. This is why I was speculating we'd get some negotiations yesterday. Apparently that may not happen which means bad things for the markets.
Minis daily - OK, we've covered all this stuff for years now. the blue channel upper market resistance, the yellow rising wedge that is being overthrown now and its apex coming, the beige channel, the pink channel and the STB point at 1729, the development of the red MAJOR support diagonal and the green falling wedge. The fall's progression will go red, green, pink, yellow (twice) and then blue. This next move to 1600 and pink channel support, at that support, you will hear end of life as we know it discussions, and that's right where were headed if she cracks here. That MACD triple negative divergence is rather nasty.
So, we sit and wait while the bought and paid for crybabies in DC hammer out this crap. I'll reiterate that I'm (so far) proud of the GOP for fighting this rogue fascist state. I do not think we'll default on our debt (yet - STB prediction from '09 that massive global defaults would end this mess). I do think the debt ceiling and QE will be increased. I do think the top is set if this support breaks. That may be wrong, but I think I'll be forced to call it either way.
I've discussed the volatility we've had at length. the volatility that surrounds major tops. I've also warned that AFTER the LEH crisis there was one last massive bull trap rally (and that was without a massively corrupt and manipulated market like we have today). I've warned of their desperation to fight and save their system at any cost, any cost. We've discussed that they can not let the markets fail or they lose. Remain vigilant and expect anything. You can still not get too one sided here with their history of BBQing shorts on the barbie. We're close, very close. Hang in there.
More to come below.
Have a good day.
GL and GB!