Never Mind…

The crash? Never happened!

The only people who got fucked were those trying to practice sound money management techniques. Those with stops lost their stock and many are out of the game. Now, a notable journalist, who’s name is a type of fish, wants you out of the markets completely because they are “broken”. No shit. Markets are only broken long enough to part you from your money. Markets are working perfectly for the big banks. Even Citi made money every day. No wonder Wall Street is so hated.

We will now pick up where we left off. Very quietly many stocks are up huge–and where they were early last week.

The FED has ensured that savers get penalized for saving by getting no yield. Now the market battle-bots have decided that anyone trying to be “safe” and limit their potential losses will be shaken out. Caution is not allowed. It is either all in or all out, all long or all short. There is no in-between.

At this pace we will be at 11k and 1180 by tomorrow. Mazel Tov!

I know that many think that technical analysis only seems to work over the very near term, but I’ve noticed a few things…

• The SPX has made a perfect Doji Cross on this rebound in the daily chart. Usually that means death, but this market does its best to trick everyone. So instead of instantly turning to test the recent lows, we’ll get another up spike day.
• Nasdaq Comp has a Spinning Top at the exact halfway point of last weeks action in the weekly chart. Watch out for that one too.
• Gold is on its way towards testing its 1250 high, maybe before week’s end. Yeah, I know. Master of the obvious…

Can it be? The game resumes…

Nobody can say anything more about last Thursday’s crash than, “Crazy Robots” or the old “more sellers than buyers” as an excuse for those truly harrowing few minutes.

As I have alluded to before, in my humble opinion, the reason for the crash is that Wall Street put a gun to the fleshy shoulder of Washington and pulled the trigger. Just to show they can.  And it hurt.

Sure, the Eurozone is bad. But that was the smokescreen; the seemingly legitimate excuse for the “more sellers than buyers” crash. It was addressed quickly with another trillion and without much worry.

Goldman or whoever is the king of HFT knows the weakness in the market. After all, they were given the keys by John Thain when he went “all in” to the dark side. No more people getting paid to take risk, only machines.

The first shot in this new war was made by Obama in January and the markets were programmed for a drop of 100 SPX points. That was a firm warning and Washington paid attention. Financial stocks began another leg up on the expectation that there would only be toothless reform.  But the draw of populism was just too strong–especially after their victory against the evil health insurance companies. The administration was emboldened.

By bringing charges against GS, they threw down the gauntlet. By embarrassing them in the kangaroo court, they assured reprisal. The Greek/Euro story was perfect cover for their nefarious plan to get even, and kill any real reform. To show them who is really boss.

After a few days of concerted big volume selling pressure, the markets were primed. Pressure was brought to bear and the market softened under the body blows. Then the hammer fell, all HFT buys ceased and non-HFT buy orders were routed to the Sidecar. Sellers continued to mainstream directly into the market. It was mostly over in 5 minutes.

Stops were hit and sucked up by buy stops under the market. The selling pressure let up and buy spigot was turned back on.

Here we are, just a stones throw away from 11k and 1180 again. that is your resistance. Game on, again. Low volume uppy, goody/high volume downy, baddy… 

The big question now is if Goldman–who lost money ZERO days last quarter (lol) will “run-em and gun-em” again just to make the point and as a reward for their humble victory.  Somehow I think we will have a few more days of volatility and scare to ensure the public is out of the market.

Contrary to reports, “they” don’t want the odd lotter in the market. They want them out and after last week, many are screaming to the heavens to get out of this broken market.  They want and pretty much have obtained complete control.

Congratulations! We are the financial capital of the world! And major financial reform is dead…