Friday, December 2, 2011

Morning Post - 12/02/11, SPX

Let's make this simple -

"Today we got the update for the two key ECB liquidity lines for the day after the bailout. And things are actually much worse than even we expected." So Much For The Bailout - European Funding Situation Worst Since March, As ECB Deposits And Emergency Loans Soar | ZeroHedge

Things are worse than expected and as evidenced Monday by the central planning stick save. This market can collapse at any moment. My daily readers know that we're all doomed and know that these band aids will not solve the structural debt issues facing the globe. It is only a matter of time, but what do we as investors do in the mean time?

Well, we all know by now the markets are rigged and will do whatever they need for them to. Do you need any more evidence than Monday and Wednesday of this week? The brain-trusts in the EU have till December 9th to come up with a plan. Where have we heard this before? Oh yeah! That's right, the October record rally into what would be a sure fire solution to the crisis when the ECB and the sovereigns were to have a remedy by October 23rd.

Well here we are on December the second, two emergency funding events later and an MF Global robbery and still no solution. It has been stated by many that even if they do save some they can't save all. They are in a massive pickle. Tell me, just how do you solve the greatest debt crisis in history by heaping on even more leveraged debt? They have no answers.

So we, as investors, have to wait out the Shakespearean tragedy. Fractaling this top to the one in '07 as many are doing can be advantageous, but actually thinking the markets will do the same thing can be a fools game. Remember, this is a whole new game involving the central planners and easing and a rigged, corrupt, fraudulent, unregulated mess they call a market.

Not till my "event" comes and rips control from "them" does this thing implode. Back at the 1292 top I was calling for a drop and pop to set divergences on the daily indicators. Some questioned if the move to 1275 was enough and the closes actually came within 8 points of each other. At that time, as in the game of hand grenades, that appeared to be close enough.

Now I'm looking back at that call and wondering if we did not give it enough time to properly set up. Yes, "they" averted what should have been a massive disaster this week. Now let's look back to the 1275 and 1292 tops and see what materializes. The last time (October) they had a "plan" to be delivered the markets ran with reckless abandon into the non-event. That may be happening again.

Weekly SPX - see the fractal and the intervention this week right under the apex of the wedge of the rise from the 667 lows? I think they averted a massive event this week. How many more stick saves do they have in their bag?

Remember the Reason for the season!

GL and GB.

"You're a mean one, Mr. Grinch. You're a really ARE a heal."

Minis 1m with VWAP -

No comments:

Post a Comment

Keep it civil and respectful to others.