Morning Post 01/18/12 (SPX)

Let's not mince words this morning and make this really simple - we're all fucked and if you don't know that and don't start preparing for the worst case scenario that's your fault. Quit listening to the lame stream media that wants you to buy into the hopium story. Good example - Liesman on CNBS this morning simply asking the question, "Do you believe the market will rise 30% on a Romney election?" Quit listening to the broker dealers and their advisers that count on you for generating fees to support their excessive undeserved salaries. It is all a bunch of shit.

Got that? You better. Tale it from the, "World Bank urges developing economies to “prepare for the worst” as it sees risk for European turmoil to turn into global financial crisis reminiscent of 2008". World Bank Cuts Economic Outlook, Says Europe Is In Recession, Warns Developing Economies To "Prepare For The Worst" | ZeroHedge. Did you read the AD last night? If not go back and read the opening section.

It is all about stimulus and how much money can be thrown at the problem. Folks, realize that we have been throwing money at this problem since 2008 and have done nothing to fix any of the issues. It is the banksters and Wall St. against you and me. The fraud and raping of the middle class wealth funneling everything to the financial institutions creating a new phenomena called debt serfdom. Quick note on the presidential candidates, Ron Paul is the only one that will stop this.

Let's do a full chart review like we did last week -

Daily SPX - Resistance diagonal (black) at resistance area (pink) with weakening underlying indicators.

STB Morning Post 09/16/11, SPX

It's Friday! Lawdy it has been one heck of a week for the bulltards. I have no idea if this opex, bailout, manipulated BS run is over or not. I do know that the domestic economy is worsening and that the EU (and MENA) are in shambles. All this will end in some sort of horrific scenario. Till then we operate on hopium and playing the game of extend and pretend.

STB has been walking you thru the progression of the short term charts diverging and looking to turn. What STB has been pointing to is that the 30, 60 and daily charts were not near ready to go yet. The markets confirmed this. STB has tried to walk you thru the progression of timing, and how to appropriately work the turns (my way, more conservatively trying to find higher probability using divergences).

Now we have the 30m chart most likely confirming some sort of corrective here. This works well with the market ending opex here and the EU liquidity high about to wear off a bit. That said, this is a news driven market and it does not take much to get a violent immediate reaction in either direction. Speaking of news events, next week is the FOMC meeting. The hope of a QE announcement (a bit late for the now defunct Goldman's Alpha team) may be enough to maintain elevation.

FOMC Meeting Chart - See the previous reactions to FPMC meetings below.