Monday, May 6, 2013

Morning Charts 05/06/13 SPX /ES

Since I have nothing new to say I thought I would do the post a bit differently this morning.The first several links are all from posts on ZH and you may have read them. I thought they read well put together as a post.

"the only option for the bulk of the periphery to regain competitiveness was through ongoing wage collapse and persistent localized depression. Five months later, just as predicted, Europe is in a worse shape than ever before, not only in those non-core countries where wage deflation is accelerating, but the weakness has fully spilled over to the core."

"The clear message from the doctors this week is that they plan to keep administering the pills, in larger quantities if necessary, until the donkey turns into a butterfly."

"Last week at its regular policy-setting meeting, the Federal Reserve affirmed that it is prepared to increase its monthly purchases of Treasuries and mortgage-backed securities if things don’t start looking up. In all, the Fed has pumped more than a half trillion dollars into the economy since announcing its latest round of “quantitative easing” (QE3) in September 2012. With no recovery in sight, where’s all this money going? It is creating bubbles. Bubbles in the housing sector, the stock market, and government debt. In the meantime, real families are suffering. We are certainly not in a recovery."

"What is "obvious" to most participants is that the stock rally is fueled by central bank liquidity and quantitative easing, and since there is no limit in sight to these policies, there is also no limit to the stock market running higher." ..... "What is "obvious" to those embedded in the conventional, MSM/state-manufactured worldview is not the same as what is obvious to those outside the asylum."

"Swaps, as a tool, will no longer be able to face the upcoming challenges. When this fact finally sets in, governments will be forced to resort directly to basic asset confiscation."

"Financial markets operate on a number of implied assumptions about growth, policy direction and other factors. Experience tells us that these assumptions often turn out to be erroneous. A modern economy is an incredibly complex entity that involves millions of transactions every day. The notion that this vast and largely self-governing system can be controlled through tools such as government spending and/or an increase in the quantity of money is - to say the least - bizarre."

And that was just the financially related stuff. Syria, Israel (shields back up) and the rest of MENA are really starting to heat up. The Benghazi whistle blower issue should (should) send ripples thru DC and cause some heads to roll. O-care is crumbling. The DHS is on the hunt for even more ammo regardless of who's looking into what they are buying and why. Those and many. many more things are in the air right now. Things all round are not well at all. I assume it won't be long before the chainsaws they are juggling start to do some real damage. You have to see the desperation, the struggle, the chaos ruling things now and see the global dislocation occurring. It won't be long till someone blows up the wrong (or right) thing (if they have not already) that sets off the global powder keg.

On to the markets -

They are what they are. After reading everything above one should be astounded that the SPX is above 1600 and not at 600. Total control and manipulation. Nothing more - Nothing less.

SPX Daily - Maybe cash has formed a new upper channel (black) and upper resistance along with the upper BB might contain price here for a few days. Wondering if they will let it slip back below 1600 or keep the round level as support? Negative divergences galore.

Minis 60m - Blue channel backtest is resistance along with upper (old) green channel resistance.

SPX Monthly - Simply amazing stuff, what they can do when they want to.

The two P's folks. Nothing more.

Have a good day!

GL and GB

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