Wednesday, January 22, 2014

Morning Charts 01/22/14 SPX /ES

Earnings season is in full swing. I guess the only mystery left is how many new accounting gimmicks we'll uncover this season. The non-gaap and gaap variations are amazing. They need to change the G in GAAP to an A - from Generally to Any. I guess anything is good as long as they print a number Wall St. likes and the MSM can run with, real or not. 

You don't have to peel back the onion too far to deal with another level of the farce. This one is the most blatant and in your face lie there is. Pure and simple accounting fraud/manipulation to manufacture a number that is pleasing no matter the reality. Whatever it takes I guess? They will pay for it one day. When that day comes no one knows, but you can't keep living a lie and pretending all is well via data and financial manipulation forever. 

We need to pay close attention to the bond markets in the coming weeks. Chatter and posts are everywhere that reality may start showing up in some rising yields and declining prices. The China Trust issue, Japan, our UST, all may be about to hit a severe bump in the road.I think the bond markets are about to make a statement none of us will be able to ignore (except for the equity markets of course).

On to the lie - 

My ToS is still interrupted I think by my security software on the office computer, so no minis again today, but I did grab this from home last night - 

Minis  4hr - Rising pink wedge inside the rising green wedge. If they can't drive price above 1847 then price will crack pink support. As soon as that happens though there is red and green support with the 1823 s/r area, so they have a built in circuit breaker if they fail here. Anything sub 1823 and the game could be changing for real.

Daily SPX - It's just nasty overbought and begging for a larger correction. Just needs a catalyst, a small push as most are lined up at the exit doors waiting for them to open.

More to come below. I'll work again today on getting my ToS back up and running.

Have a good day. 

GL and GB!

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