Monday, October 25, 2010

Morning Update/ Market Thread 10/25

Good Morning,

It’s a Monday... so naturally equity futures have been ramped higher on the back of a dollar that is being crushed. Bonds are soaring higher in a schizoid quantitative fit, the Yen is reaching new completely out of order heights, Oil is reaching for $83 a barrel, and gold is climbing again evidently leaving its mini-correction behind.

And just look at all the manipulation that occurs when you put the G20 together for a weekend! Oh yeah, the IMF “good guys” are going to reorganize to give more power to the emerging markets and they are going to open up its membership to “voting.” LOL, AS IF they are even some type of legitimate organization, THEY ARE NOT, they have as much legal basis as MERS (none), and the U.S.’s participation with the DEBT PUSHING CRIMINALS is not sanctioned by the people of the United States. Giving more power to “emerging markets” is telling us loud and clear that means LESS POWER for the United States! It means the oligarchy who are robbing America blind (same people who own the big banks here, they own the Fed, they own the politicians, they own the exchanges, they own the HFT computers, they own the media, and they own the military industrial complex!!!), are simply packing up their U.S. operations (as we are now debt saturated) and they are moving to take advantage of the next group of as of yet unsaturated saps who have yet to learn better.

And whoa! How dare the Germans call the U.S. “currency manipulators!” Oh the humanity of it, can you believe it? I’m shocked!

And so the majority of the G20 agrees not to manipulate their currencies lower, which leaves the U.S. dollar to tank on its own (with the British Pound), because we all KNOW that in fact this “Fed” and administration are THE biggest manipulators of markets the world has ever known. This is exactly what “QE” is, it manipulates the bond market directly which frees up money to manipulate equities and commodities, all the while intentionally crushing the value of the dollar. Hello $4 gasoline and $12 hamburgers. Every time you eat, you will be paying back the debt with interest, in effect handing over your productive capacity to the oligarchs. It’s a hard chain to follow for most people, but it’s a fact and it’s way past time to wake up to the reality.

And Gary Shilling says that home prices WILL drop another 20% over the next few years sinking the number of homeowners who are underwater from the already horrific 23% to the Noah build an Ark level of 40%!

Got equity?

Existing home sales come out at 10 Eastern, and it may not be too impacted yet by the foreclosure freezes as sales (or the lack thereof) take a while to work through the system. The big data point of the week comes on Friday with Q3 GDP. The consensus is looking for a RISE from the laughable 1.7% to 2.0%! This is the joke of the century, for if the data were truly corrected for the fall of the dollar it would be hugely negative – and if it was corrected for financial engineering it would SHOCK the world at how little we actually produce. Look for this figure to be manipulated higher since it is right in front of the election, and then it will subsequently be revised lower. Consumer Confidence and Sentiment are both released this week, look for these to not reflect the artificial heights of the stock market nor the artificial “growth” numbers.

The HFT machines managed to create two flash crashes just after the close on Friday. One took the Russell 2000 futures lower, the other took the dollar futures flashing down to the 74.6 level:

These flash crashes are an indication of a marketplace that is extremely thin on volume and run solely by computers. It is an artificial market, it is held up entirely on electrons and financial engineering, there is very little fundamental value to support prices at this level. Expose the entirety of the financial FRAUD, and there may very well be an overall NEGATIVE value in the stock market! AHHH, did I really say that? Yes I did. The entire market is built upon a foundation of creative financial engineering and accounting fraud. Take that out and there is very little left to base our stock market, our dollar, our debts upon.

And just look at what the oil and gold charts are showing. Oil is forming a bullish flag worth about $10 a barrel. If it breaks higher we’re looking at $93 per barrel oil:

That’s not a done deal yet, the markets would have to continue to hold together for that, and we are oh so overextended! Just look at the percent of stocks above their 50 day moving average! When this figure gets above 90%, as it is now, there is a very high correlation to market tops:

There is potentially a megaphone top being put in place. It’s not that large of one, and it’s not perfectly formed in all the indices, but it’s potentially in play, so I’m showing it below in red on a 30 minute SPX chart. This pattern may be fairly close to completion:

Some of the momo stocks and commodities are entering what appears to be a parabola. Those create very dangerous and difficult trading opportunities – be careful! Contrast that with what’s occurring to the charts of the financials and you will see that this is not broad and it is not supported – it is therefore FALSE. You can click your heels together and wish yourself over the rainbow all you want, it’s not going to change the fundamental reality of our collective predicament…

Remember this tune? Bill Still used it at the end of his film, The Secret of Oz. I understand that he had permission from Ava’s mother, but in corporations infinite lack of wisdom but infinite power and control, EMI wanted $50,000 from Bill to use it, so he was forced to remove it from the film. This changes all the links to the film, you can now find it here sans the tune above – someone’s dream is coming true: