Friday, August 31, 2012

Open Weekend Post 09/01-03/12

You know the drill ,share the love and the knowledge.

Please participate in the new poll, question to the right.

I will be out of touch all weekend, appearing sparingly if at all. Huge week next week pulling the EU into the light and then setting the table for the Fed on the 12th. I suspect we will hear a lot of bad news that will be accompanied by a lot of easing rumors both here and abroad.

I suspect volatility should return with downside action only spurring violent reactions from more Hilsenrath prompts and Potter wand waving miracles. It should be a wide range bound wild ride not meant for the one's with weak stomachs. I would not suspect any higher highs till the week of the 12th and that would be only if easing is announced. Then again, it is their game and we have to follow their ever changing rules, so anything is possible. If BB is willing to throw congress under the buss verbally, then maybe he is willing to prove his stance by generating some real market fear to whip them into action?

Morning Charts 08/31/12 SPX /ES

Well ..... We're waiting. We've actually been waiting (and fully priced in) to hear just what? That the Fed will perpetually ease till infinity anytime that we need a hopium infusion? So, what's news about that? We all know that without the Fed printing and maintaining ZIRP the whose system would implode.

So where is the big surprise? That would be if the Bernank does not ease now? How ridiculous is this whole scenario? Why is that a surprise when we all know he's not going to ease till he has to. Why use your last bullet when the simple promise of easing (or using his tool) is enough to do the dirty work for you.

Why is everyone expecting something different this time? With the SPX over 1400 and economic "conditions" apparently manageable what's the driver? Why the hype? Well that is where the lies and smoke screen come into play. You see the BLS BS and all the other data manipulation has made things appear to be just less than rosy but not all that bad. Do you really buy the last GDP print? Combine that with the current market levels and they have printed and lied themselves into a corner.

Thursday, August 30, 2012

Does Size Matter? 08/30/12 SPX /ES

Let's do a quick review -
  • Everything is rigged
  • This will all end in a horrific manner
Now let's review the Bernank's speech and the upcoming EU (09/06) and FOMC (09/12) meetings  - 
  • Bernank will say nothing new and reaffirm that his tool is large enough to satisfy any economic issues that may arise
  • The EU meetings will will ensure us that the insolvent ECB will be able to print enough cash to bail out the insolvent countries. The only possible surprise is if Germany balks and refuses to Wiemar again. If that is the case it is finally game over. 
  • FOMC meeting, this follows Jackson Hole. Why would any meeting so close to JH have any significance? It shouldn't (not that any of the meetings are significant in the first place). I mean how hard is it for a bunch of old elite fogies to sit around and decide whether to print fiat or not? 
  • China, well let's say Big Red is in a world of hurt, but they are smarter than we are as they have been on a global PM and resource grab for years now converting their undervalued fiat into real resources. 

Wednesday, August 29, 2012

Morning RANT 08/29/30 SPX /ES

Like trying to get cold ketchup out of a bottle? Remember that old 'Anticipation' Heinz commercial? Agonizing isn't it? And we can't even beat our hand on the 57 to make the flow go any faster. The only problem is that in this case nothing 'good' (market crash or global financial ruin) is going to come out of the bottle till something extreme happens (my "event"). Well, what comes out can be considered 'good' if you are like me and want a total implosion of the global financial system to happen sooner than later so we can get on with our lives and stop living the lie.

Kicking the can, extending and pretending, call it what you want. The hopium trade must end so we can remove the virus that is the crony capitalist elite and restore the state to its rightful owners. That would be returning it to the people and taking it from the special interest dominated system. The greed and excess that the fractal fiat system has created must be wrung out in order for us to move forward towards prosperity. 

One of my prognostications is that this nightmare will not be over till you see the minimum wage lowered (yes, I said minimum wage lowered). Not till the lest common denominator is reduced will this charade end. (I'm not going to address nationalism, global competition or us shipping jobs overseas or any of that mess that you know exists in this post) 

Tuesday, August 28, 2012

Morning Charts 08/28/12 SPX /ES

The waiting game continues. The rumors and opinions fly, but no one knows for sure what The Bernank is going to pull out of his ass bag of tricks to fool the investing public this time? With the elections so close can he even hint at policy? Well that's probably what he'll do. He's gonna throw out a few ideas and let them ferment in the market place hoping that (as proven over the past year) rhetoric and not actual action will be enough to keep the markets elevated.

I think a big surprise could come in the form of some real socialist type move. Direct stimulus to the sheeple could be a real possibility. This would have controls of course, but something like this may need to come sooner than later as public sentiment is rapidly deteriorating. Is there a better way of shutting up the screaming baby than to give him a treat?

Draghi To Miss Jackson Hole Forum; All Rumors Now To Focus On ECB September 6 Meeting which will be followed closely by the FOMC meeting September 12th. We're stuck in rumor hell for the next two weeks. This is wonderful for the crony capitalists as the markets barring some sort of event or catalyst will have a steady flow of rumors to keep the markets under control.

Monday, August 27, 2012

My .93 Cent Apple Billing Nightmare

A bit off topic for the blog, but this story must be shared. It is a story of stupidity, waste of time, waste of money, aggravation, horrific customer service and a system that is so computerized one can't simply make a payment to resolve an account issue.

Here is a story of great inefficiency caused by an overly automated system. If this is our future, we're screwed. All of the aggravation and time wasted in the following post was caused by a .93 cent billing issue that I wanted to pay but can't because Apple's system is so computerized they are incapable of simply taking a payment and crediting your account over the phone (like this is a sin in the 20th century as Biden would say). What should have taken less than 5 minutes has taken an 1:20 minute phone call, 4 or more emails and is still unresolved the following day.

Morning Charts 08/27/12 SPX /ES

OK, Jackson Hole here we come. What do I think we get? The same 'ol crap, The Bernank will say something along the lines of we'll do what we have to when we have to cause we're the ultimate backstop. The markets will be a bit disappointed, but content to know that the Fed has their back and will move if necessary.

The presidential political football is in the air, the EU issues remain front and center, the economy is floundering at best all while the SPX resides above 1400 which means there is no pressure right now for any action (regardless of the harsh cold reality that lies deep under the economic veil of deception).

Friday, August 24, 2012

Open Weekend Post 08/25-26/12

You know the drill, share the love and the knowledge.

I'm still mulling whether to call a top or not. I got a bit of a reprieve Friday with that nice little ramp courtesy of the Bernank's "we'll ease if we gosh darn please" comments and a few other developments that gave the markets an apparent renewed shot of hopium. As evidenced, these markets can change direction in a moment.

I think everyone is a bit fed up (pun intended) with what's going down right now. Most any sane person knows that the battle being waged by the financial elite is pointless and will only end in devastating financial ruin with us all basically having everything stolen from us. If that does not happen us (and the next few generations) will wind up as debt slaves to the elite.

What a wonderful situation we have found ourselves in. They will feed you a line of bull a mile long that they have the tools to fix everything when we all know that they are manipulating everything. No wonder everyone is so annoyed. Just imagine how ticked we're all gonna be when they manage to extend and pretend one or two more times averting the inevitable?

As shown all week, the charts are ready. The question is then, is the Fed?

Have a great weekend.

GL and GB.

Chartapalooza 08/24/12 Dollar, Oil, well .... Everything

I need to churn out some individual detailed reports on the below. I'll see if I can get to that next week. Let me know what you want to see.

Read 'em and weep -

Dollar - I suspect our fiat gets one last pop when the Euro fails. That will piss off uncle Benny, but that's too bad. He'll get his wishes of mega devaluation sooner than later as they MUST devalue to support the exponentially expanding debt of the country. A crash is coming but not till after the Euro failure, rush to safety (LMAO) pop I suspect the failing reserve currency gets. I still think you will live to see the dollar with a $4 handle. Dollar sits at channel support and multi-year s/r  at $81. That's a very important level.

Thursday, August 23, 2012

Morning Charts 08/23/12 SPX /ES

Waiting on the shoe to drop. Again, not much to comment on as I await a catalyst that can turn the markets. We all knew the rhetoric leading into Jackson Hole would be hot and heavy, and that the hawks would be few and the doves many. We all knew that this week's Greece talks would bring great uncertainty, but would at the same time bring promise of another extend and pretend move from someone in the euro zone. China is falling apart, but that simply brings hope of more bailout cash to hit the system. As for the rest of the PIIGS, well, you know the story.

So here we sit with everything crumbling down around us and all they can do is promise more easing will come if necessary and the markets celebrate. Yes, folks, it no longer matters what condition the country is in or the condition of the global financial markets. The only thing that matters now is will they ears or not. Heck, in the EU they are now resorting to openly secret plans, now that's irony for you. Uh, you know the answer to that one right?

Wednesday, August 22, 2012

Morning Charts 08/22/12 SPX /ES

Top calling is a fools game, but that's what I do here at STB. As a market Sherpa I have chosen the path of greater fools. Fortunately my track record is (what I believe) one of the best on the web having delivered consistently accurate calls over the past three years.

The game has not been all that hard to call actually if you followed the Fed and the risk on/off trade. They ease and markets go up. They stop easing and markets fall. Technical analysis has for the most part been spot on with the moves. Most know I have used a combination of TA and following the Fed to great success. This time, this top, is a bit different though.

This time the Fed is not using "QE" they are twisting. This time is also different in the fact that the last two rounds of easing have done nothing for the economy (all the money goes to the banks and then into either the markets or lavish bonuses), and here the S&P sits above 1400. It is also quite apparent that they will must  ease again at some point soon.

Tuesday, August 21, 2012

SPX Full Spectrum Charting 5m to Monthly

My condolences to those that have tried to short this manipulated POS. I'm just gonna sit and wait on my catalyst. See if you can identify the blow off top point. I still contend the markets should have topped at 1374 double top. I still hold my 120 first and 1170 second targets. Patience Grasshopper. Right now it looks like the 1390 to 1380 area will be a first move target. Of course that is YTBD cause the Fed is in total control.

Do me a favor if you have not already and favorite my charts on stockcharts and like them if you are able or willing to.

You may want to read S&P 500 Facing 25% Drop Before US Election: Janjuah

SPX 5m -

Monday, August 20, 2012

Morning Charts 08/20/12 SPX /ES

Something strange happened this morning, a rumor got squashed! What you say? A rumor did not cause a 15 point spike in the e-minis and send the markets soaring to new heights? That's right, the ECB print forever rumor was quickly shot down. Now that's amazing right there. The minis rose as high as 1418 and then began a 5 point slide indicating about a break even open on what appears to be slightly heavier overnight volume than in recent weeks.

Folks, we're in total wait and see mode. Between the EU sorting things out and waiting on Jackson Hole (and add the markets at highs) this holding pattern may be on another week. This little bit of bad news (rumor squash above) is definitely a change in course as this is just the sort of thing they would have let run for a few days to allow the markets to feast on the speculation.

Friday, August 17, 2012

Open Weekend Post 08/18-19/12

You know the drill, share the love and the knowledge.
I suggest you take a look at The United States’ $122.1 Trillion Debt Visualized in $100 Bills Pay special attention to the last picture where the $122 TRILLION on UNFUNDED liabilities is expressed. Note that $122 T number - that's $122 TRILLION in unfunded liabilities. You may want to look at the National Debt Clock while you are at it. These both do a nice job at visualizing the dire state of the union and quantify the fact that we're so deep in debt we'll never be able to pay it off nor support the interest alone. As I have been saying for years, do the math! Failure is immanent.

And then I suggest you watch (h/t RC) Ann Barnhardt rail the system and tell you to get the hell out cause they are gonna take everything. Silver for barter? You bet! (it will be the only way around the cashless system one day)

This is real folks. the shit will hit the fan and when it does precedent has been set that allows then to take everything (and they will).

I'll update the chartbook this weekend and post a broad updated detailed report Monday morning. We still wait on the Fed and Jackson Hole (non-event). I wait on my catalyst hoping this is not the "big one", cause no one want that to come. It is coming though.

Have a great weekend while you still can.

GL and GB!

Morning Charts 08/17/12 SPX /ES

Not much to say again today as the "promises" or "hopes" (or whatever you want to call the BS) that global leaders are spreading about solving the crisis, that supposedly ended years ago, continue to mislead the markets.

Merkel supports the euro sounds great, but when the Germans vote nein on the issue and decide to not go all Weimar again, things will revert right back to where we were three months ago, or a year ago, or two years ago. So they are gonna save Greece? Riiiigggghhhhtttt, sure they are. A country the size of Alabama with more debt than it can ever hope to afford. Sure, that's gonna happen. Spain, France, Portugal? Oh, OK, we can bail them all out for sure.

All will be well in the land of digital dollars and empty promises till it isn't and that day is coming soon.

SPX Daily - It is what it is. The double top at 1420 would be a classic spot for a major reversal and all the charts say that the potential for a huge turn is coming soon. Note the TNX (pink) ram that occurred into the last top.

Thursday, August 16, 2012

Morning Charts 08/16/12 SPX /ES

There are no magic bullets that I can use to call this top. Technical analysis will get the call right, but it may require an extreme amount of patience. The Fed and the elite crony capitalists are in total control. As mentioned a few weeks back I believe we have now entered a period of unprecedented market and regulatory manipulation.

Yes, the QE periods were bad enough, but all they did was elevate stock prices and keep the sheeple quiet. The failure of QE to revive anything economically (despite what CNBS may tell you) is blatantly obvious. Now we are at a point where the next round of QE is coming. It is not a question of if but when and how?

So the markets patiently wait perched at the highs. Like a dog sitting for a biscuit, tail wagging, tongue out, eyes bright following your hand's every movement. They mindlessly wait for that brief but all important moment of joy.

So, will the Fed deliver a big fat biscuit or will they send us to our kennel disappointed in our masters choice? We have to wait and see.

The charts say that something is about to break big time. There are no guarantees to this as you know who is in total control of everything these days.

Wednesday, August 15, 2012

Morning Charts 08/15/12 SPX /ES

So, what should we waste our time discussing this morning. I feel a bit like Mr. Hand and the Fed and its gang are a bunch of Spiclois (or is it the other way around?) The way I see it the Fed is causing a major disturbance on our time.

What is there to discuss that's not to the Nth degree for the umpteenth time over the past four years? Greece, Italy, France, the EU, MENA, US jobs, GDP, debt you frigging name it, it is one giant scratched record. Here we sit extending and pretending again except this time they screwed up. They forgot to let the market crash. They got greedy and thought they could have their cake and eat it too.

All there is to do now is sit and wait. As discussed here every day, you have to follow the Fed. That is your only option. Don't fight it. Nothing has to happen (at this time) other than what the market manipulators want to. I've discussed entering a period of unprecedented manipulation and that's just what you are witnessing right now.

So, do the bears get their correction? I think so. Will this be the big one? Not sure, it all depends on the catalyst and what the Fed can muster to fend off any attacks. We need to wait on Jackson Hole and let the Fed tell us what their plans are. How will they use their tool this time? Hopefully they will stop jamming it up the rear of the current and future generation of taxpayers. HA! Don't ever count on that. At this point without global default (which I have called for years) you are forever indebted to the system to pay for the years of corruption, waste and wealth transfer to the elite.

Tuesday, August 14, 2012

Morning Charts 08/14/12 SPX /ES

It is what it is. S&P Futures Gap Up 0.5% -- That Is AllWTF is all you can say. Why bother attempting any rational explanation of that move?

SPX Weekly - Looks like they are being set up for the kill.

Monday, August 13, 2012

Morning Charts 08/13/12 SPX /ES

Waiting on Jackson Hole and the belief that the Fed can make everything well again with one stoke of the digital printing wand is what we're reduced to at this point. Simply the promise or knowledge that the Fed will not allow market prices to fall under any circumstances is all that we can rely on now. Purely manufactured, liquidity pumped and hopium infused markets today reflect nothing more than the illusion all is well.

SPX Daily - No one knows what the Fed can or can not do regarding price movement. One thing that is for sure is that the upper end of price appreciation is nearing. I'm still thinking top and massive crash. I figure they have 6 months max before my "event" happens. We're going to see massive global turmoil much sooner than later and the food shortage timed with the financial collapse is not going to help the situation.

Friday, August 10, 2012

Open Weekend Post 08/11-12/12 SPX /ES

You know the drill, share the love and the knowledge.

Me thinks the powers that be are starting to sweat it out a bit. Is something coming that they don't want us to know about? I mean they throw out the "banks get ready to prevent a catastrophe" piece. Then all the FOMC mouthpieces come out spewing QE. The China must ease sooner than later rumor. Are they indirectly telling us that something is up? Add to all that the charts, as I have been showing all week, are coming into their own topping situation.

Are the stars aligning? I think so and apparently the Fed sees it as well. So they start lobbing QE rumor bombs and bring out the PPT to try and salvage the (absolutely sensational) 1400 level.

So now we (and the world) waits on the Fed and Jackson hole. Elevated market levels have pretty much dominated discussions. Can the Fed ease above 1400? 1,300? Sure they can. I don't trust 'em and you should not either. Caution is advised. Well timed and protected scalps remain the only way to play this mess. In, out and done, don't mess around with trying to ride something overnight.

They avoided the weekly doji at the close Friday and the charts, finally with the daily, are all coming together for the bears. Heads up next week as the game should be on. Who's gonna win, the PPT, Fed, CB and HFT team or the rest of us? LOL, that's not really a fair fight is it?

I'll update some charts and post anything interesting that I see.

Thanks for another great week on the blog.

GL and GB!

Morning Charts 08/10/12 SPX /ES

Bad news, well, the worst news, is the best news. You all know that. So CNBS is touting that China may now ease sooner than later. Yippie! You got that? The world's best hope for economic expansion and the last great bailout backstop is falling apart and that's a good thing. Speaking of bad news we all know the EU is a withering, dysfunctional, corrupt, broke sack of poo, but none of that matters as the promise of more easing to kick the can is all that matters. How bout here at home? Pick any economic number you want and things are looking pretty dire. And let me remind you that those economic numbers are all BS in the first place (lipstick on a pig) and they still can't make 'em look good. Now Jackson Hole is just weeks away and the Fed's annual bailout fest will be another massive party for the kick the can crowd.

It is pretty clear how we got to this point. It is sad that at this point we continually do all the wrong things and refuse to take our medicine. I used to use the analogy of we got the patient in pre-op and have just held him there. We never made it to the operating room to remove the cancer. So that cancer (corruption and debt) have grown exponentially over the past 4 years. Now the patient is terminal and what was a serious surgery (heart and lung transplant) where the patient at least had decent odds of survival has now become something akin to a Anakin Skywalker makeover where the odds of survival are virtually nil.

Thursday, August 9, 2012

Morning Charts 08/09/12 SPX /ES

Let's run thru a few charts. In a round about way I'm trying to get across that the market should be forming a top here. Of course that would be in a normal, non-manipulated, non-crony capitalist controlled, fair and real market. This QE crap shoot is nothing ordinary or normal.

I'm thinking top soon, but reiterate that this market is now more rigged than ever and blatant intervention will be worse than ever the closer the elites come to the end game scenario. Maybe that black rising wedge below needs to finish. Maybe it doesn't. I'm waiting on a catalyst to break the bulls hold on price. I do believe the final top, or near it, will be blatantly obvious.

Wednesday, August 8, 2012

Morning Charts 08/08/12 - Thinking About A Top Call Here - SPX /ES

I really don't have much to say this morning. I am, I believe, close to actually pulling the trigger on calling a top. I guess that is some news. Top calling in this manipulated POS they still call a market has become a fools game. Thus far I believe I am the lesser fool than most that play in this arena. I have only called two tops in the history of the blog, so this is serious business for STB.

I did not call a top at 1420 in April. Price here may not eclipse that number and thus I may technically have missed the mark, but having price move back above 1400 here I don't consider it a failure either. Bottom line is the Fed is in control. It was plain to see that QE to infinity was in play and as you well know QE is all that matters.

I still contend that technical analysis will get the call right as the hard numbers never lie. Price, no matter how manipulated, is supported by underlying technicals and when those slide or diverge even (or especially) in a rigged market the weakness will prevail.

Tuesday, August 7, 2012

Morning Charts 08/07/12 SPX /ES

OK, this is getting a bit out of hand, two shootings and now a refinery fire. The Sikh temple shooter was a former Army psyops specialist, am I about to go bit far with this? (of course I am) What's next, a war? I'm not sure how to react to this one as a shut down refinery may be the thing that could push the consumer and economy over the edge. Whoa, whoa, wait, the calls for QE3 would be louder than ever.

I may be on to something here - could this be a manufactured terrorist strike on ourselves? Are we the largest sponsor of terrorism on the planet? How about that, and guess what, they did not have to crash the markets to get the fear QE trade up and running. Brilliant! I can see the Manchurian Manbat right now teleprompting this as a good thing to get thousands hired (and then outsource the job to a Chinese outfit). Bottom line is this being an inside job really fits the bill right now given the position of, well, everything. You should actually expect a rash of incidents like these in the coming months as the crony capitalists are finally out of bullets facing he end game.

Monday, August 6, 2012

Morning Charts 08/06/12 SPX /ES

Washington's blog hints at our future and possibly the only true solution to the current crisis in Will We Have to Wait for a 21st Century Peasants’ Revolt Before Seeing Any Real Change? I have often wondered (and espoused upon many times) why we are not in the streets yet? I concur that it will take a total revolt to take the system back from this rogue government. The easy route would be a military coup, but that ain't happening. Until we get off our lazy asses, awaken from our self absorbed slumber and see the corrupt system for what it is, the situation will only continue to get worse.

The crony capitalist cabal run by the central banks controls everything. This nightmare can only end in one of two ways, either we destroy the banks or they destroy themselves. I think the latter will be the case. Till then we awaken every morning to the nightmare where every ounce of your financial well being can be destroyed  or stolen (legally or not) by a simple keystroke from the banking elite.

They are stealing everything folks, right from under our noses and we are not doing one damn things to stop it. It will be our duty to rise up if we want to remain free and control our destiny. The sooner the better as every day they steal a little more freedom and clamp down. If you can not see this, I am sorry. This is reality and it appears that revolt will be the only way back to where we want and need to be. If you can't see that they are preparing for total civil unrest by their rapidly expanding police state and the destruction of the Constitution, you need to wake the heck up.

Friday, August 3, 2012

Open Weekend Post 08/04-05/12

You know the drill, share the love and the knowledge.

I seriously believe, as you have repeatedly read over the past couple of days, that we're entering a time of possibly the worst and most blatant intervention we have ever seen. That's saying a lot. I think Friday morning's price action halting Thursday's slide is a first solid example of this.

As discussed Friday morning, there is a serious problem brewing between those that must have QE and those that must have high market prices. Either a wedge will be driven between those two powers, or they just ease here and just say screw it. Right now is possibly the most dangerous time to ever play in the markets.

Have a great weekend. I'll get some charts up tonight or tomorrow.

GL and GB.

Morning Charts 08/03/12 SPX ES

OK, now the confusion sets in. I believe it has become apparent that government/Fed dysfunction is peaking. Maybe the BLS BS job stuffing is now running counter the Fed? I mean, like, who's agenda is most important, the Fed's or Obummer's? Do we want QE or a better jobs print for sentiment going into the election? I got some news for the Manchurian Manbat, you ain't bigger than the Fed or the market. Most powerful man in the world my ass. You have disgraced that moniker (let's not forget to give W a big assist there) and are no more than a puppet to the banksters and special interests that control your destiny.

So WTF happens to price now as the markets with QE all priced in and veins pumped full of hopium sit all perked up like ...(I better not go there)? LOL, I give up? Can they have it both ways? I don't think so. In a market where the worst news is the best news how can good news be good anymore? If you are a bit confused, you should be. In order to understand the markets today, you first have to remember that nothing is  real anymore. Then you have to take that leap into never never land where unicorns and pixies and only happy thoughts exist. A land where nothing bad can happen and the government and Fed will always make sure your every need is taken care of and bad things can never happen. Then invest accordingly (whatever that means).

Thursday, August 2, 2012

Morning Post 08/02/12 SPX /ES

My favorite headline this morning is GM's Earnings Fall 41%, Better Than Expected (from CNBS of course). What can be better than expected about a 41% decline? Doesn't that sum up everything so nicely? It is so, nonchalant. It's like trying to say to the sheeple, "Damn, this is some good shit. You need to be buying into this great American story!" Better than expected!?!? Really? (as they slowly ship GM to China one piece at a time.)

What a joke this whole hope theme has become. Here we are almost 4 years into this "hope" BS and what has it gotten us? Hope is BS. Doing nothing while relying on the government to do everything is BS. What isn't BS is the rape of the middle class so the government and the Fed can support the banks to keep the illusion alive that the system isn't collapsing. What isn't BS is the extreme waste supporting the entitlement class (the democratic voter base). Now we are supposed to "Follow" this asshole four more years? Really?

Hard work is real and can produce results. Well, that is if you have a lot of help from everyone else, cause you all know you can not do anything by yourself. The government is responsible for everything as the Manchurian Manbat reminded us a few weeks ago. So we are being conditioned to rely on the government tit for everything. How well is that gonna work out when there is nothing left to tax, the banks have stolen all the real assets and they have printed (digitally of course) so much money that the dollar will be worthless?

Wednesday, August 1, 2012

Morning Post 08/01/12 SPX /ES

FOMC day, I usually crow about these and point to major ones months in advance as a harbinger or some sort of major event that would move the markets one way or the other. I'm not saying that these meetings are not important or can't move markets anymore, they can. They are just not worth speculating around anymore as the Fed simply Xeroxes the last meeting notes, changes the date, extends ZIRP and promises that they have the tool for the job. Of course the markets buy whatever he's selling as he's cornered the market on hopium.

As most by know now, as I have been writing since spring of last year, the markets are not at a level where easing is apparently needed. The economy on the other hand desperately needs an infusion. So what is the Fed to do? I have been promoting the idea of a manufactured crash for well over a year now. Along with that came many questions, mainly, can they control a major move south and not let it get out of control. Another question, will they just say screw it and ease here? STB was also ahead of the curve on the diminishing effects of QE on the markets. This means they have pushed the lies and fraud to the limit.