Same Ol Same Ol
The votes have been cast and the results are in, Obama's PPT is carrying on the same plan to try and stop the drop as W's team did. If you look at the panel at the bottom, the dark black line is the heavy buying of the Large Speculators in the E Mini S&P 500. Keep in mind that this group is generally the accelerator of trends, momentum scale up buyers and scale down sellers. This is the opposite pattern of what is normal as there is huge buying into a significant downtrend, and enormous losses for those doing it.
If you keep in mind the above normal activity what this tells us is that "someone" very large with virtually unlimited buying resources is attempting to stop this downward move in prices. There is only one entity on earth with this type of buying power that can afford to lose this much money and keep buying, our good old friends the US Government. These trades are done through large investment houses like Sachs etc and what better time to do it than now. They have a better scenario for tight lips than ever before due to putting money directly into them. Who the hell would spill the beans in that situation? Nobody!
This does not bother me in the least as I know it exists and if you know how to spot it, you can use it to reinforce your evaluation of the trend. This is a confirmation of the downtrend in this market. Maybe they can pull it off and hold this market here, but I do not believe so. If these levels at the lows do break it is likely we have a large move down coming. I have seen several forecasts from better traders than me calling for choppy action until the fall, which should feature a big drop. I have no idea if they can hold it up this long, but I would be surprised. The latest reports have shown a small amount of commercial buying in the indices, but not enough to warrant a trend change. I am short this market from a few days back and will continue to short bounces when they occur, taking profits along the way.