Thursday, March 8, 2012

Morning Market Summary and Charts 03/08/12 #SPX $ES

I'll borrow this from TD this morning because it is so concise, "Yet the mood of the morning is set by speculation that the Greek debt swap may see a sufficient participation rate for the PSI to go through, even if that means CAC activation, as somehow a Greek default is good, and only an "out of control" bankruptcy would be bad. That coupled with renewed expectations of more QE, sterilized or not, and hopes that tomorrow's NFP will be better than expected, as somehow the Fed will pump money even if the economy is "improving", is all that is needed to send the post-roll ES contract to session highs nearly 1% higher than yesterday's close." Overnight Sentiment: Risk On | ZeroHedge

It is always refreshing to hear some inklings of truth from those in the know. We all know this fiat farce is nothing more than a monetary fantasy where the land of milk and honey can go on forever because the CTRL-P crowd will never stop printing. Not to terribly long ago Germany actually bought up the idea of collateral for some of these loans insolvent institutions are making to other insolvent institutions. A novel idea except the lenders print from thin air and the borrowers are supposed to put up some sort of real collateral (like gold). Not a fair trade is it? Welcome to the banksters fleecing of the globe.

I suggest you read Ex-ECB's Juergen Stark Says ECB's Balance Sheet "Gigantic", Collateral Quality "Shocking" | ZeroHedge. "the balance sheet of the euro system, isn't only gigantic in size but also shocking in quality." and ot is not any better in the US with the Fed holding potentially even worse marked to fantasy MBS crap.

The markets are a tough call right now as Greece PSI (to my knowledge at this time) is still up in the air. Last night the minis gapped down 5 points which did not last long as the markets recovered that gap and continued to run another 7 points. Since then they have pulled back and the reaction the the disappointing jobs report this morning was a non event.

Minis 5m - There is the new yellow channel off the 1338 lows. The gray area is the gap last night.

Miis 30m - Thru pink resistance and channeling up.

I have been discussing backtests for the past couple of days, the rumor flow that would start and the PSI deal and the FOMC meeting to come. Sadly I can not put my finger on anything specific or concrete at this time. I said to buy em at 1340 for a scalp. I have warned about improbable initial short squeeze bull trap ramps like the one in July. All that occurs in the face of a horrifically overbought market that keeps dodging nuke after nuke that could cause implosion at any moment.  

All you can do is hang on. Have a plan in place and trailing stops to keep from getting burnt too badly if things work against your trades. Patience and form is still in play. Form finally indicates some sort of top was set. Now can the bears pull it off (or will the Fed finally yield)? This is a really tough time to be playing the game as you are dealing with controlled/rigged markets with a Fed that will do anything at any cost to keep the bubble inflated.

They stopped a nasty move in its tracks last night. Slammed the door. Markets are nervous for a good reason and you should be as well. I'm looking for flat to weak market today and maybe for the yellow corrective channel to fail. 1353, 51, 48 and 41 are the support numbers. 1360 and 65 are upper resistance.

RC's and a few others have been barking hard about Will the solar storm disrupt power grids? (+video) - for a couple of days now. CMEs are no joking matter. Did you know that the Chance of a Catastrophic Solar Storm Is 1 in 8; Would Take Down Power Grid, Food Transportation, Water Utilities, Financial Systems. 1 in8?

GL and GB.

No comments:

Post a Comment

Keep it civil and respectful to others.