DISCLAIMER

PLEASE READ THE DISCLAIMER AT THE BOTTOM OF THIS PAGE WHICH APPLIES TO ALL CONTENT IN THIS BLOG AS WELL AS ANY OTHER MATERIAL FROM WE ARE FUTURES TRADERS LLC. READING ANY CONTENT BELOW CONSTITUTES AN AGREEMENT BY ALL READERS THAT THEY HAVE READ AND AGREE TO ALL THAT IS SET FORTH IN THE DISCLAIMER AT THE BOTTOM OF THIS PAGE.


Wednesday, March 28, 2012

POLITICS IS RUNNING EVERYTHING




Tonight while working out in my gym I caught an interview between Lew Dobbs and a money manager who he said had called the markets movements more accurately than anyone else he knew in recent times. The guys name escaped me, but he said the following when talking about Bernanke. There will be a conversation between he and Barry after he gets Barry re-elected by his manipulation of the stock market, and he will say it is time now for you to save me. The thinking was that he was going to have to raise interest rates, and he would be able to do so now that Barry got a second term by him keeping them low for him.

I have absolutely no idea whether or not some type of relationship that direct is actually going on but I doubt it. Plausible deniability of course is likely in play and those conversations are probably between other cabinet members and the FED. In any event, the world is simply one insiders game after another. I think most people realize what the FED is doing at this point. Then we shift to this debate in the Supreme Court about Obamacare. It appears the Justices will go along party lines. This is infuriating to me. What the hell do party affiliations have to do with the US Constitution? Kagan had a role in drafting this legislation in it's inception and she does not have a conflict of interest? That is like asking a criminal to turn himself in because he is the only one who is qualified to determine if he did something wrong. Seriously? The process by which judges recuse themselves is one of the most laughable things in the world. They could go to the comedy and magic club and bring the house down with the comedy of that whole process.

I think you get the picture. Now we come to month and quarterly end, and we have another inside baseball situation in the stock market. Once again today right on cue between 12 and 12:30 on a down day the mysterious rally at the end of the day took place. What a coincidence that was. Money managers are told that it is illegal to window dress at the end of quarters, yet we see this tremendous upside bias that continues to be in place at these times. All of this makes me think we need a much bigger shakeout than what we had in 07-08, to get rid of all the crooks. I don't think we have gotten even a small amount of them. The proceedings over MF Global have Corzine denying everything, another guy taking the 5th, and a trail they are trying to paint where nobody knows who did what. In the mean time many individual investors have been fleeced. 

I could go on and on, and I am sure in the businesses readers work in there are equivalent things going on. Everyone just has to rig everything so they take random chance of different outcomes out of the mix. However, there is a funny thing about life, the natural flow does have a way of getting back at all these man made attempts to rig things. This is why we have these massive crashes at times. If we weren't always artificially moving things around, these huge reversions would not happen. As I watch this equity move in spite of all the other things going on that are not good, I don't know of a time when this amount of separation between economics and stock prices has occurred. It will be resolved by another huge decline, but the when and where is unknown.

I think the outcries about Gas prices are ironic. They conspire to raise asset prices by flooding the economy with liquidity. They even state they are trying to inflate asset prices, I guess they meant everything but Gas? Lets blame the speculators. Guess what, when money floods the market it is designed to increase speculation. Hello!!! I go back and forth between thinking these people are just plain stupid and them being smart and assuming the rest of us are the dumb ones.

In scrolling through some weekly stock charts ironically I found the energy stocks to be the laggards which does tie into me looking at the short side of the energy complex in the futures markets. I am still looking at the long side of Gold and Silver here but for Thursday they would have to really rally big to get me in. I will likely be looking at something for Friday there or even into next week.

The main reason I went through all this insider stuff in this post is to make people realize, that it's equivalent in the futures markets is the COT report. The insiders there are looking down in energies and up in Gold, so I am trying to get in on the conspiracy and not fight it.

Good Trading

8 comments:

Anonymous said...

Chris

Would you say Coffee is in the long setup?

John M said...

As Leonard Cohen sang it, 'Everbody knows that the dice are loaded.' Doesn't matter where you stand on the political or even socioeconomic spectrum, you can smell the rot from miles away.

April is looking good for metal money to the upside. Good luck with that.

Chris Johnston said...

Yes on Coffee I am looking for a buy signal there

John this is so true. To think that even Judges who are supposed to be above the fray are essentially politicians also makes me sick on both sides. The law should be the law, it should not be interpreted with a conservative or liberal opinion injected. Impeachment processes need to be started after this is over for those who are essentially breaking the law by what they are doing on this.

Squire said...

The Fed (and just about everyone in government), and the Wall Street banks want Obama re-elected. The last thing they need is the libertarian and tea party element in the Republican Party challenging their dominance and privilege. Obama will save Bernanke if he helps Obama get re-elected. Same with the banks.

The banks have let the hedge funds know this. It is insider information. Watch the short term stock market price action. There is strong bidding that I view as gleeful, on every dip whether the dip is happening over five minutes or a day. The funds are averaging in.

Anonymous said...

Impeachment processes need to be started after this is over for those who are essentially breaking the law by what they are doing on this.<<

The Supreme Political Court is ALWAYS about politics--please see the 2000 election, the court during the Great Depression, etc., etc.

Michael Treyder said...

i see exactly what you're saying on this. this was a very very frustrating day for me albeit the positives.

Robert said...

Chris ,
Another day but the same old song-Markets down then right on cue at 12 they suddenly turn around and the Dow ends up positive...There are no more free markets just interventions

Chris Johnston said...

the election was a fiasco and so is this. I had a friend who met a judge at a party and they had a disagreement and he threatened to have him thrown in jail for whatever charges he decided to make up that he knew his cronies would stand by.

Judges are the single biggest problem without question in our country in my opinion

Vintage PPT today once again, you can almost bet the house on the late day saves