iBankCoin
Read Scott here on iBankCoin and also at http://www.createcapital.com/
Joined Jan 19, 2010
717 Blog Posts

My Political Market…

Published on CreateCoin Premium.
An Excerpt:

In the current market environment, where Central Bank financial engineering matters more than anything else, it has become obvious that the market responds more to politics than at any other time in modern history. There was time not too long ago where you had to work hard to connect what happened in Washington to what happens on Wall Street. Government policy only mattered to the long-term big-picture but what comes out of DC now moves markets instantaneously. Considering the market has been living off of government largess of every type, I guess it is natural for it to be a little paranoid that it can all be taken away easily and quickly. You wouldn’t be able to sense any form of market anxiety from the bullish market action, but with the MBS buying finished for now and interest rates ready to rise, it is easily understandable. As long as the green light is on, the market will continue to build a cushion as it gets ready for the eventual handoff from Washington. It has become the political market and it is a scary thought.

Comments »

Alert watching….

Ladies & Gentlemen,

Markets have just put on a remarkable show over the past few days. Everyone now believes that there is nothing that can touch this market and it is the epitome of resilience.

I want you to be very, very careful here and now. We are facing an imminent reversal in the major stock indices. I’m not stupid enough to call a top–but rather cautious enough to know that at this stage of the dance, you’d be wise to tread very lightly…

Comments »

The game pauses–then resumes…

So, the administration figured out how to manipulate the markets for more than to just “save the economy”. They figured out how to manipulate the markets for political gain. Bravo! Healthcare and financial reform have been cornered and “thy bidding will be done”. Now let’s see them go after campaign finance reform and lobbyists. Good luck with that.

The markets paused on the potential opening of Pandora’s Box. But after a few selective leaks about SEC voting and a White House denial of meddling, markets have reversed back to the primary trend of grinding higher on light volume. Amazingly again, the downside volume was huge and then it just dried up, again. Even with the sound and fury, the uptrend remains intact. How de do dat?

Obvously the “trend is your friend” will die hard. When it does, it will be a downside bonanza. But we’re not ready yet. Over the intermediate-term, here’s how you’ll know: When analysts can no longer upgrade earnings estimates or price targets. When that slows to a trickle, then its over. This latest move up has been accompanied by massive analyst upgrades. That fuels the “buy the anticipation” trade.

Never mind about China or Europe or the massive engineering job underway at Treasury and the FED. It won’t matter until it does. The game of the Wall Street complex MUST continue regardless of a few minor details like a fraudulent Shadow Banking System and few bad investment products.

PS. Whenever S&P Equity does something, do exactly the opposite.

Comments »

Are they really going there? Really?

Everyone in the world of finance knows what has been going on for the past few years; the culture of moral corruptness at the very core of the casino. SOP has been a criminal enterprise, with conflicts of interest running rampant from the top down–and none more criminal than the government sponsored “bailout”.

Now we are going after the Godfather of the Seven Families for tax evasion? This is just the tip of the iceberg, if you know what I mean…

It won’t be over-leverage or the misuse of capital that brings our financial system to its knees. It will be the prosecution of corruption that had infiltrated the very core of every firm. If the government wants to, they could find shit in every dept. of every firm and certainly not just in sub-prime or CDO’s. From the top to the bottom, it has been and continues to be a land grab at any cost–sponsored by said government.

Do they really want to go there after spending trillions to save the sinners? I doubt it. We all remember what happened to Drexel, don’t we. The gov. can bury anyone–even their right arm if they are spiteful enough. But the ends would be the ultimate cost.

As I’ve said before; this is Chicago-style, Mafia-type tactics designed to force the banksters to stand down against financial reform. This is a classic game of hardball, but the stakes are in the hundreds of billions. Somewhat punitive financial reform will pass very quickly now. Abacus will be remembered not as the destroyer of Wall Street, but as something invented by the Chinese and used to count coin.

Comments »

Feeling simultaneously smart and foolish…

another excerpt from yesterday’s market commentary on CreateCoin Premium:

There is a new and major opportunity in the market and I’m going to forego it. I’ve decided that I’m going to miss the next market move by choice and in advance. Markets across the board are about to pause and retrace perhaps a quick 5% and that will possibly be more than five hundred Dow points. But like I said, I’m going to skip it. The reason is that if I’m wrong, the price will be too heavy given the market’s recent proclivities.

Comments »