Former Fed Governor Fisher dropped a bombshell on CNBC Tuesday Morning. It was such a complete bombshell and surprise that CNBC heavily edited his comments to make them look like they were about China instead and essentially memory holed this video. I could not find the original on their site anywhere because they buried it so deeply. In a nutshell he basically said that the Fed has:
1) “Front loaded a tremendous market rally”
2) “The Fed has no Ammo left!”
3) He expects a correction of 10-20% and says folks are nervous and raising cash levels.
4) He basically admitted that the Fed created a manipulated wealth effect and now we should expect a hangover.
I forwarded this video to a friend of mine who mangers $20 billion in Equities. He has known that this market is bullshit but has had to play. The frankness of Fisher shocked him. The bottom line is that as we unravel many investors like him who don’t really buy into this market fully will hit the bid fast if we gather steam to the downside. This video should raise alarm bells as the this Matrix of manipulation is coming undone rather quickly. All manipulations eventually fail. I recommend that you take the time to listen to this Fisher interview I found on youtube which hits the highlights.
Additionally, I have included an interview by Tim Wood a Market Cycle Technician that was recorded on News Years Eve. He is seeing ominous things in his work. If you listen to both men they are basically saying the same thing. Both men think this rally has been a giant manipulation and that we are going lower in price. The only difference between them is the matter of degree in price decline expected.
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BTFD crowd is already trapped & out of $$$….
Down we go
Does this mean Ann Margret won’t be attending?
Covered all my Grinch puts today. Still massively short but less so. No options on.
@Blue – Nice trade man!
too funny – now Fisher comes clean after years of saying nothing
I’ve been net short for probably the better part of a year and have been constantly dodging and sidestepping the ‘buy the dip’ crowd while trying to stay net positive but wow 65% down seems a little extreme even to me. For the sake of a lot of people relying on pensions or those invested in mutual funds in their 401K plans I certainly hope he’s wrong on the magnitude. That would be totally devastating to those people and not something I would wish on anyone. Then on the other hand maybe that’s what it would take to clean things up (think Congress among other things) and get the country on a better path that actually benefits the average person.
Nicely put (not a pun)
Two things between-your-lines, there’s no way there wasn’t some larger reason bigger picture behind the manipulation machination too big a scale to just be a best-effort boy-scout did our best, and the voiceless silent majority vapid greedy pussy brokers&managers.
@jc Stock market never should have been that/this high, putting those 401ks that heavily at risk, Would never been that high without the massive manipulation and control which is now being more evidenced/revealed. Your concern is extremely misguided, you and the older/wise persons of our society should have been sounding trepidation months and months ago. and you didnt
Update Thursday Jan 7,
I have not covered anything else. Maybe we bottom here but we are not oversold yet and we are left translated meaning bottom will take longer than you think. If you are thinking of shorting here you missed the boat. Wait for next bounce.
We NOW go POSITIVE for Q1…..investors handled this week’s downdraft like a Chipotle burrito!
Lots of rift raft cleared out…… now we have more room for the rift raft to re-up and take us higher. Q1 2016 closes positive …… as Mike McCarthy (GB head coach) said you can book it!
Post Q1 another story of 2 stand dev below the lows trend line since 2003 drawn into and to 2020…… translation we S&P at 1000 in 2016/17….Then a REAL secular bull starts !
The cattle have been well trained.
Update Friday January 8th,
Sold all my volatility purchased on Xmas eve. Had to bank here. Remain short my SPY from May highs (I will ride this down into crash lows this fall) and small cap consumer fraud stocks. I will reload vol and puts on rally out of pending low.
what a trip,am on board with you now, not too late, not much capital,
put: apr #MFC-tsx
/calls: feb #XLU , #XRX (under water) and mar #SLW-tsx
strange brew but will break even at worst, maybe.
the upside is on the downside
http://kingworldnews.com/michael-belkin-broadcast-interview-available-now-1-9-16/
A lot of bold statements until he spoke about how much the market would correct. It’s not very bold to call a 10-20% correction when it’s already down 10% from all time highs.
Move along, move along. Nothing to see here.
Bloomberg has been gathering data on the total of Central Bank International Reserves for many years. Since December 1, 2010, the information has been updated every Friday, and has been available on a Bloomberg website, accessible only by subscription.
On Friday, December 11 of the present year, Bloomberg published no information regarding International Reserves as of that date.
On Friday, December 18, once more, Bloomberg published no information regarding International Reserves as of that date.
http://www.plata.com.mx/Mplata/articulos/articlesFilt.asp?fiidarticulo=279
Bubbles take forever, this really should have fallen apart at the end of 2013