Goldman Sucks, renegade company of the century, reported earnings after the close that were LESS than the amount of money they received via AIG (tax payer money). Let me state that another way… had Paulson not arranged to shoot taxpayer money to AIG that he knew would be funneled to GS, then GS would have lost money in the first quarter, and that’s with marking assets to fantasy.
And I’m going to say this again… you can pump every last cent in the world into the banks but that will not improve economic conditions a single iota, not one. Quite the opposite. Too little liquidity has never been an issue! Too much liquidity is the real issue, it has enabled more debt than there is income to service. That’s the problem. Far too much optimism as is usual during a bear market rally based upon intervention, lies, and manipulation.
Today we closed with the DOW down 25 points, the S&P was up .25%, the NDX was down .27%, and the RUT was flat, producing an inside hammer.
Internally advancers were 18 to 13 on the NYSE and evenly split on the Nasdaq. 67% of the volume was up on the NYSE and the number of new lows increased from zero to nine. The VIX rose 3.5%.
Here’s a 20 day 30 minute chart of the SPX. On Thursday, last week, I showed this potential ending diagonal and mentioned that we may rise a little to about 865, and that’s exactly what we did today. If pattern is valid, this was probably the high for now. I would not stick around short, however, on a move above this formation. The stochastic is a broken record, severely overbought on all timeframes up to weekly. Oh, and the RSI divergences are back:
The SPX daily produced a near hanging man/ near hammer. Overbought stochastic and you can see the potential ending diagonal:
The DOW daily shows the same candle only red. Right on the 100dma, on lower volume, and overbought:
The Transports produced a perfect red hammer, but it’s inside which degrades the reliability as a reversal indicator. It, too, was on lower volume. The RUT produced an almost identical candle as this one:
The XLF is just nuts – it’s just more partying on taxpayer money. They are not healing, they are stealing. Heck, making money long on GS is worse than making money on tobacco companies – bleck… pfst… you’d have to spit the foul taste out your mouth and shout 3 Hail Mary’s! Impressive candle today, though, still above the upper Bollinger, but on diminishing volume – the volume also came down on IYR:
The Put/Call ratio closed at .67… every time it’s closed this low recently, it has marked at least a short term top. One of these times it’s going to mark a top that will at least produce a reasonable pullback. This is very likely that spot:
So, overall the odds favor a decline, especially if that ending diagonal confirms. However, I wouldn’t stick around on a break above. Allow the banks to take excessive risks, fail, get bailed out by taking hundreds of billions of taxpayer money, pressuring accounting changes, diverting AIG funds, and then report profits is just enough to make me want to lose my lunch. These corporations are out of control, the central banking function needs to be returned to its rightful owners, the people. Goldman Sucks is the renegade of the century, and thus has prompted a return of Styx – hey, I like ‘em and didn’t have the time to search for something better! I do take requests, but you need to provide a youtube link, I’m investing too much of my time in these!
By the way… I am being told that I will be getting Martin Armstrong’s latest expose’ either late tomorrow or on Wednesday. I have been reminded to remind everyone that he is doing his calculations on his cycle dates by hand. If you noticed a discrepancy in his papers, as I did, that he was talking March earlier and then April 19th, he confirms that April 19th is the correct calculation. Get this… he has agreed to take questions and will answer them via a go between, so get your questions ready! It will take about a week to turn around answers. Hey, who’s the renegade really?
Styx – Renegade: