Filed under: Old Posts — John Galt @ 7:53 pm
by John Galt
Ah yes, for those who partake in The Jungle for their sports news, you know what the Triple U means; in this case though it stands for our markets today:
Unimpressive, unmotivated, and underwhelming
1. Unimpressive
The Dow got the 8000 level, soared past it and fell back. Not an impressive move and other indices did not fair much better.
2. Unmotivated
The volume on the NYSE was a paltry 1.8 billion shares; about 600 million or more shares short of what I expected when the financials got FASB’s permission to issue comic books, er, mark to model fantasy documents on their “legacy” assets. I really expected the bulls to rise from the dead and make it happen and that indicates a lack of conviction to me, despite the other technical indicators.
3. Underwhelming
Despite all of the good news about modifying their books and the happy face nonsense portrayed by the Comintern in London today, the market felt a wee bit shallow, without some of the big names that should have moved forward flailing along.
For example, one of my “marker” stocks that I watch is Goldman Sachs. Look at the huge move up on the open then slow trend downward to flat for the remainder of the day:
The chart above does not show as well but there was huge buy on GS at the end of the session which took it back over 114 and the average daily volume. I wonder if this lack of motivation will continue through tomorrow’s session when some big news opens the day and will provide the cover for a major selling wave.
There’s my UUU take but there’s more.
Cramerica has declared the depression is over thanks to the FASB and the G20. This was the same moron who told everyone to hold BSC at 42, buy Citi at 20 and that WaMu would recover since Killinger was replaced as CEO and it was time to buy that bank too.
Need I say more about the political agenda of Bubblevision? Convince people to buy, buy, buy and when the money is lost it’s all due to those greedy bankers and those evil Republicans obstructing the Messiah’s plans. I was convinced of this when I heard Howard Dean, noted economist (?) from the DNC was hired as a commentator. Then yesterday that illustrious vision of journalistic excellence (insert massive pile of barf here) Ariana Huffington was asking questions of Nicolas Taleb which to me looked akin to Paris Hilton asking Stephen Hawking about Quantum Physics. I guess next CNBC will get a morning set up called the “Mud Wrestler’s Trade” where half naked blessed women coat themselves in mud and make stock picks.
What a joke.
Thus with Cramerica’s declaration and Ariana’s deep questions I have come to the conclusion that the “financial media” is close to its next implosion and I think yesterday’s forecast of a massive tankage coming soon is approaching. Yes, the markets are nicely above their 50 DMA. Yes the mood is shifting in the media attempting to influence the sheeple. And yes, the Obama entourage is out of the country which is a reason to actually try to engage in capitalism while Il Duce is not here to fire a CEO of a company you may wish to speculate in. When it is over in a week or so and the market rolls over as earnings start to roll in, watch out. The decline we could, I repeat, could see, will be sharp, violent and triggered by a dislocation in the bond market which I feel is possible as the Federal Reserve is playing with dynamite in their purchasing plan and could create a rush to sell instruments in anticipation of a Fed move into certain bills or notes and the complete and total mistrust of the banks now that FASB-157e is in force. The Fed will then have to decide to buy more than they had planned in the Treasury and corporate market and that risk is real, in my opinion.
On to the charts….
The Dow gave the bananas another day to dance. Ugh, sorry gang, the Banana Republic lives on.
With that out of the way, here is your Dow chart which should have closed at least 200 points higher than I thought it did with all the happy-happy joy-joy news we saw:
Timmy you made your fellow banksters proud.
The UTT-BUGLY Chart of the Day was easy to figure out. Gold took a beating as everyone ran to make a buck in the equity markets and profit they did if they were in the correct sector. The positive is that it held the $900 figure but the bad news is the drop substantially below the 50 day moving average. If gold does not recover the 50 DMA and get back above $930 in the next 7 days we could see a drop down to the 200 DMA again and more consolidation around the $860-$880 area. I figure Turbo Timmy or The Messiah will do something stupid and guarantee another precious metals rally and the new budget passing tonight will not hurt that cause.
Standby for more as tomorrow night’s radio show will be a LOUD rant about what is going on in our world, the Comintern meeting and the wars that nobody wants to talk about.
-John
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