Tuesday, March 27, 2012

Morning Market Summary and Charts 03/27/12 #SPX $ES

Ah, the promise of QE can do miraculous things. Looking back you gotta wonder who got the advance copies of the Bernank's speech Friday around 10:00 when the markets abruptly turned off 1380 and since have climbed 39 points to a high of 1419 in two trading days. Their MO has been to allow a 20 to 30 point move south and then push it right back up to higher highs. A true correction has not happened at all on this run since the November lows.

We often discuss in the posts and in the commentary that the markets are rigged. That investing today is like no other time in history with the Fed in total control of both the bond and equity markets while the derivatives market and the banks hold the ultimate trump card. Even the Bond King is finally throwing in the towel. Bill Gross: "The Game As We All Have Known It Appears To Be Over" | ZeroHedge  "As for the endgame: "Is a systemic implosion still possible in 2012 as opposed to 2008? It is, but we will likely face much more monetary and credit inflation before the balloon pops. Until then, you should budget for “safe carry” to help pay your bills. The bunker portfolio lies further ahead.""

STB's call for a long time now has been a serious correction (we got one in June), then for more QE and a ramp to the elections with the possibility of a market implosion from an exogenous event at any moment. I still think there is one more 15 to 20% move south before November. After the election and into 2013 all bets are off.

Well, as long as the Fed keeps the QE carrot out there and until the next crisis in the Euro Zone things should remain nervously calm. Not until an event or the Fed pulls liquidity can you expect any significant move south. Everything is ready for a massive collapse, the markets just need the right catalyst.

Minis 60m - Wedging up into the last upper resistance diagonal I have (pink) near 1430. Price is back at the purple diagonal resistance that held price off the run from the 1341 low. The possibility of a double top definitely exists here. The charts are nasty overbought.

Anyone care to take a guess at what I'm gonna say next?

That's right class, patience, form and follow the Fed. I'm still in gangsta style, hit and run trading mode. When I trade, which is very rare these days, I scalp long or short, take what I can get, always have a plan and always use protection. You can not trust anything. Be careful. Be afraid. Be mindful that the markets are under the control of the central planning cabal.

I'll get a detailed chart post up for you all (y'all) soon. We're overdue for a chartapalooza.

GL and GB!

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