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STOCKS

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Swimming With Sharks

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There is a global economic war going on between debtors and debt holders. At the center of this is a too big to fail casino financial system and in debtor nations – central banks who are trying to manipulate their debt away.

The global stock, currency, commodity and other markets are all part of this global economic war.

There are giant sharks out there. The biggest, baddest, great white is our Central Bank – Ben Bernanke and company.

You can love/hate our Fed/Central bank, but as a trader or investor the most important thing is to realize the Fed’s existence and its sucessful manipulations of stocks or its current domination of the ocean.

If the below explanation makes your eyes glaze over because it too technical, skip to

Bottom Line in Red.


  • Yesterday there was a massive losses in gold (5%) and silver (7%) This was a coordinated smack down by the Fed and its many allies.
  • Investors411 has stopped recommending gold or silver as an investment because the margin rates can be raised at any time by the large institutions that hold gold or silver. This decimates the price.
  • Our Fed wants the dollar to be king (something they can manipulate) not gold. Ron Paul folks are more than a bit more than upset over this and other Fed manipulations
  • The Chinese are upset over our Fed’s money dumps (Ouantitative Easing , Operation Twist, Maiden Lane, and other Fed programs) becuse they think this inflates their economy. – They’re right.
  • So on the surface Fed chair Bernanke makes some announcement backing away a bit from more money printing, but under the surface his allies stagged a huge bear raid on gold and silver. For more see last night’s Jesse’s American Cafe or this AM’s ETF Digest.
  • One Investors411 mantra has been - “Stocks/Bonds/Currencies/Commodities are being manipulated by central banks.”

Bottom Line

As a stock holder –

The Fed has your back Jack


The warning part in all of this is the $6.5 trillion in growing printed money by debtor Central Banks (USA and Europe) and a vampire financial system. See yesterday and past blogs for more


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  • Our #1 technical forecasting tool, the McCellan Oscillator (MO) is at -34.08. 50 Day Moving Average at +21.45 (for more see  STRATEGY link at top of blog and scroll down) Close to oversold territory = NEUTRAL
  • For weeks now almost every technical analyst  has called for a correction. If you read the MO like a chart it says that we are already correcting.
  • Manipulated markets, especially in the short term, can trump technical analysis. The low volume rallies of the last few years are proof of this.

  • Italian 10 year bond yield fell again to 4.99% (8:00 AM EST) - No where near the danger zone of 7.0% of almost a month ago.
  • With the Italian bond rate below 5% This canary is now both singing Ode to Joy and dancing

We are getting a very bullish signal out of Europe this AM. The ECB, our Fed’s biggest ally, has successfully manipulated the yield on the Italian bond below 5%.

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Longer Term Outlook

3 months+

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Still

CAUTIOUSLY BULLISH

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AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.

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