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.

Weekly Long Term - The set up here is actually better than the one in 2011 and lots better than the 2010 top.

SPX 60m - This chart actually topped technically back on the week of the 16th IMO. Everything beyond that is unprecedented manipulation surrounding the hopium hype.

We're still in wait and see mode. Do we get our biscuit? You know I am waiting on a catalyst. Empty promises seem to be enough to generate all sort of effervescent joy from the markets, but that all it is. There is no substance and only fizzy lifting bubbles are holding price up here. Like in Willy Wonka, we're a few burps away from falling back to the floor (or from the Family Guy rendition a few good farts).

This was a great post form Zero Hedge all should read - 41 Years After The Death Of The Gold Standard, A Look At "How We Ended Up In This Economic Purgatory" For you non gold bugs and people that don't quite get how the Fed and the bankster elite have destroyed our nation (going for the quick rehypothecated fractalized riches) read this post. "fiat paper money that is not grounded in any objective standard can be manipulated at the whim of the issuer. Without the requirement to exchange fiat money for gold or some other commodity, the central bank can issue unlimited amounts, thus making its value subject to extreme volatility and, as we have seen, perpetual debasement."

As usual, more analysis and charts below in the commentary.

GL and GB!

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