Thursday, June 14, 2012

Afternoon Delight 06/14/12 - Stress Test

Stress test is right! I'd hate to be the chair behind a central banker's desk right now, because you know it is getting gnawed on pretty heavily right now and will thru the Greek vote this weekend. Here we sit on the verge of a democratic vote that could ruin the elites plans for global banking domination. How do they plan to respond to the threat? Well, they all gang up on the rest of us of course.

Then I read, Here Comes The Mother Of All Rumors: G-20 Sources Say Central Banks Preparing For Coordinated Action. By now you must have realized that for me to attempt to cover all of the bad news is futile. I read it and see it as you do, but regurgitating it here has become more than redundant for most of us. Well this is a must post, do not miss announcement (rumor or not), because this is what it all boils down to. Why? Simple, because the past 4 years of economic stimulus, recovery, green shoot BS Keynesian experiment is about to blow up in their face and the derivatives market that they made billions off of is about to go up in smoke if this vote goes the wrong way.

This week and last I have discussed sideways volatile consolidation to come in the markets leading up to the Greek vote and the FOMC meeting as the uncertain schizophrenic sentiment (epic collapse fear/bailout hopes) dominates trading. If you read Coordinated Rumor Ramps Risk which has, “With OPEX tomorrow, this vol could not be more stop-inducing and painful for many as the Dow has now been -150, +150, -80, and +160 pts this week and decent volume today although average trade size remains limited (on the lack of conviction we pre-suppose).”

Minis 60m - The white s/r price point is 1341. The red support is the diagonal off the '07 and '11 tops near 1306. Yellow is a more recent resistance point. This is your range. If 1341 goes then 1374 to 1400 is in play and if 1306 (1301 really) goes then look out below. Every ounce of upside action

OK, here is the deal, nothing else matters other than the Greek vote and the FOMC meeting/response. Now, here is the twist (not that kind), what other sort of actions may follow a financial debacle? By actions I'm not talking about financial decisions or bailouts, but more along the lines of social or geopolitical disruptions. Maybe I should use the term distractions rather than actions. Syria, Iran, N. Korea all come to mind. Libya, Egypt, Israel are another group. All are basically dysfunctional and one match away from some sort of global interaction or worse. How bout a sunken (soon to be retired) US nuclear aircraft carrier in the gulf?

Now it the time you have to start thinking outside the box and open your imagination to just how far will governments go to cover up or change your focus when their financial experiment fails? We'll discuss this more in future posts. Bottom line is you need to be aware (whether you want to or not) that when facing a disaster of this magnitude the gloves come off.

GL and GB!

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