A STB PUBLIC SERVICE ANNOUNCEMENT:
You must love Central Planning. It is the best for all of us. Just embrace it and let the love flow. CP is and has always been our destiny. Did you think you would be allowed to govern yourselves forever? Did you think you were capable of doing anything productively without the central planners being in control? Seriously sheeple, you can not be left to be responsible for anything on your own. You must have a great hand to guide you. One that makes decisions for the whole and not the individual. Being an individual is soooo 1776. Please submit yourself (and your gold and guns) to your local sheriff's office this morning and embrace the future. Don't fight it. If your neighbor does not comply, please call the hotline number provided and we'll gladly address that issue.
This ends today's announcement. All praise the Central Planners!
Well, it appears risk on hit overnight on low volume while everyone was sleeping (like that is anything new?). Apparently some CP data manipulation out of Big Red (China) has the futures all in a tizzy. Some sort of trade surplus growth crap that is meant to fool those that still believe any numbers coming from any government.
What is more important is to follow the money in the EU. I have no clue what they will do if the LTRO is all gone, but one thing that is for sure is the CP's will find a way to continue to kick the can once again. "What is probably more disturbing and is to be expected, is that now virtually all the free cash from the December 21 LTRO (all €210 billion of it) and then some has been allocated to the ECB, where the Deposit Facility usage rose by nearly €20 billion overnight to a new record of €482 billion, €217 billion more than the December 21 notional. The question that should be asked is just what do banks know that lemming long-only investors don't. Hint - ask UniCredit." Euro Meanders In Overnight Session As Record ECB Deposit Soak Up Entire LTRO | ZeroHedge. Those deposits with the ECB rising should be a great concern to you.
The minis last night took out the 1289.25 high on volume that represents a holiday week. The markets are sick. Mainly what you need to know about the illness is it is caused by machines and mad men that control and manipulate price to their benefit. This fact you must come to believe and understand. This charade will not last forever. When the music ends the game will be over. I'll have to pen my newest thoughts on the end game as I have come up with some new and even more devastating visions.
One chart -
There is still a chance for a pullback then move up as the 60m charts appear to want (actually screaming for), but the bottom line is that rising markets only rise into FOMC meetings. Just follow the black vertical lines on the chart below. They represent the dates of FOMC meetings. A red arrow is coming. You will just have to wait and let it come to you. You can not make the trade happen. It will come in its own time.
The 60m chart had been working wonders over the past month or so, and the second deeper sell divergence that happened yesterday is usually a money maker (up or down). I'm not giving up on it just yet, but with earnings season here (the AA miss and the LIZ downgrade were greeted with a 10 point SPX up morning?) patience for the bears will be a must.
I have a many more thoughts on earnings season that I will get to in tomorrow's post. JPM is Friday. Maybe they are ramping the markets as high as possible before the b(l)anks report. Maybe they know something we don't (LOL) and are buying ahead of a "surprise" beat from the b(l)anks? Who knows anymore? I do know that a turn is coming and that embedding the daily indicators is not a option like it was back in the QE days. Patience padewan. The turn is coming.
GL and GB!
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