A wise central banker told me I should learn to live with central banks being the dominant force in the market, whether I like it or not. I, unhappily, think he is right.And staying with the what does bad = today question (yesterday it was bad = bad that dramatically changed to bad = good all the way to fresh new ATH's) - Worst Drop In Core Durable Goods Since December 2012. Hmmm ..... the futures were down again last night only to recover again (trend I've been pointing out). I guess bad = good again, phew, back to the new normal.
"and under the covers it is ugly - Capital Goods New Orders non-defense, ex-aircraft have now fallen for 7 straight months, missing expectatons dramatically (-0.5% vs +0.3% exp.). These numbers have never fallen for this long a period without a recession."
On to the lie -
SPX Weekly - If this does not look like an end game scenario I'm not sure what does. These days one must qualify such a statement by adding the fact that the Fed and other forces completely manipulate the market, so what you see may be misleading. So you got (Blue) multi-year channel resistance being challenged, (Black) the STB Diagonal of Death having broken down and is now resistance and (Red) the rising wedge culminating it all. Folks that red wedge is like a huge ass road sign flashing red warning you that were about to run out of road, you have no breaks and there is a big ass cliff ahead. I've been discussing for a few weeks now how price is being compressed or is trapped between blue and black resistance and red support. I have discussed how red is critical support here. Hopefully this chart puts things in perspective for you. Oh, did I fail to mention all the negative divergences below in the indicators? My bad. Sorry. This market is technically gift wrapped and delivered to your doorstep for disaster.
Freedom watch -
Look, being right (for years) in the news and message I deliver really sucks. It's no fun to sit here day after day and warn you of the impending doom this market and country are facing. Hell, it's no fun to sit here an witness it either. All I hope is that you make an educated (while it's still legal) decision regarding you and your family's future based on the evidence here and elsewhere.
Take this post as further evidence of the control system we're soon to be placed under. Consider my multiple warnings to get your cash out of the system (the gates are closed remember), as in all the way out of the markets, banks and dollar into real assets. Please see Largest Bank In America Joins War On Cash.
"Chase, the largest bank in the U.S., which has enacted a policy restricting the use of cash in selected markets; bans cash payments for credit cards, mortgages, and auto loans; and disallows the storage of "any cash or coins" in safe deposit boxes."
Two words - cashless society. The ultimate control mechanism will come one day. This way they will be able to track every dollar (if they are called dollars much longer), every transaction, maximize tax collection and control you like never before. Great, they will be able to electronically cut off your water, power, car and your cash. Your only freedom will remain in the black market and your ability to barter. This is where real assets and physical items like gold, silver, cigarettes, booze and such come into play. You really need to think about the possibility of such things.
And to follow through with STB's libtard earth day hypocrisy from yesterday please see The Liberal Hypocrisy of Earth Day | ZoNation.
More to come below.
Have a good weekend.
GL and GB!