JUST FOR OLD TIME'S SAKE
Just when I had totally forgotten about them for probably the first time in 10 years, they make a dynamic return to the playing field. Welcome back PPT! Here we were again at 12:30 looking at a dismal close, making new lows and a month overdue for some type of just normal correction. It did seem it was likely we might drift down a little for a day or two, but NOOOOOOOO! Ben did not want that obviously. This is about as obvious as it can get for a government sponsored buy program to save the day.
I did love the news that reported that this was due to news out of Greece. Are you frickin kidding me? How do these "journalists" get a license? All the worlds investors are trading a 5 minute ES chart based on what they think the news out of Greece will be in the next 45 seconds? This is beyond insulting and definitively proves there is no reason to ever listen to a word they save ever again. I have a good amount of readers, did any of you buy the futures today in the last hour because you were optimistic about Greece? Of course you didn't and neither did anyone else except the FED. Then they run their little minions, the media, out there to run interference for them.
This is a microcosm of what they are doing across the board. Did anyone hear the story of the teacher that forced a young child to go home because the turkey and cheese sandwich, with some fruit and apple juice, did not meet the schools requirements for lunches. Instead they said fried chicken nuggets were better for them! I would love to see the pear bodied slob who made that declaration. They are trying to control all of our lives at such a low level, it is very worrisome I have to admit. I have stated before that I think the Dems are likely to make a serious run at trying to stop trading. Douchefett is out there barking about it and he basically along with a few others, runs the Democratic party. This is a tough proposition because of Senator Tumor ( No typo he is a cancer on society). He is a big player and Wall Street provides quite a few jobs, and there are also huge campaign donations that come from these folks. There must be a ton of push back from these people which is why that has not gone anywhere.
By and large one late buy program by the FED is not the end of the world. However, when I look at the chart of the NAZ it looks like Silver did at it's peak. This is not sustainable. The government is building another bubble I fear, but I have no idea how far they can inflate it before it pops. Timing bubbles is very tricky as we have learned in the last 10 years. I am sure there is some reason behind the scenes why they are doing this, but I do not know what it is. I understand why they want an uptrend, but to not let even a 10 point decline in the ES happen for this long is a little extreme. For now the trend is up, and there is nothing I can see as I have been saying, that tells me to short the stock market. If you are inclined to day trade on the short side, be ready at 12:30 to run for the hills. This seems to be about when they show up, if the past is any indication. You just have to buy all the dips, and shorts are scalps basically.
Adjusting to market conditions is a very important part of trading. The trend is up, and the retracements are very shallow. Until this changes keep it in mind. It has been going this way for a couple of months, but who is to say when it will stop. The Russell is the laggard, so if you are inclined to try and short this monster, do it there.
For those "hoping" for a decline, the POIV is diverging a good bit here, so that is something to consider. However, the Advance/Decline line is still going strongly upward. This does not always speak, so lack of confirmation is not necessarily a deal breaker. This one bears watching, but I am certainly not looking for anything substantial down at this very moment. If tomorrow were to close up like it is as I type this, yet not make a new high, I would have a potential sell on a decline below recent lows. We will just have to see if that develops.
I am still short Gold at least for the time being, the trade does not look very good at the moment. As I mentioned, I felt this was going to require a few tries to catch, and it is starting to look like attempt #1 will be a loss. You never know though, that is why they turn the machines on every day, so we can see what happens. It has been in the money by about $10 an ounce for a few days, but really going nowhere, and I doubt it can stand up to this stock blast off without following it. My tools still tell me to be short, if that changes and they become a buy, I will then be bullish. Pretty simple for a small town dude.
I do have some things telling me if the currency rally that is going on tonight does not get out of hand, they could be sells for Thursday.