By John Galt December 19, 2011 – 11:05 ET Goldman Sachs is beginning to look a lot like the Grinch that Stole the Christmas Rally. Check out their action today on the chart courtesy of Yahoo Finance: If GS breaks below 85 this week, the markets will follow suit and break severely before the holidays, setting up for a very negative start to 2012. Watch this sucker closely gang.
By John Galt December 19, 2011 – 08:20 ET A tad late this morning with the update but then again, I was up into the wee hours to see if the Dear Leader’s son was going to engage in a random act of kindness or stupidity. Fortunately it has been quiet beyond the traditional launching of a short range missile to scare the South Koreans and keep our boys in the peninsula on alert. The markets went no where fast last week besides dropping around…
By John Galt December 16, 2011 – 05:30 ET A short note on this morning since it is quad witching and who knows where this market will end up today…. 1. 1220 is overhead resistance on the S&P 500 so look for the PPT to be quite active to kick start the Santa Claus rally. 2. Gold had best find a way to get back over $1600 or for the short term the break down will continue towards the $1533-$1540 level. 3. A dead cat…
By John Galt December 15, 2011 – 05:20 ET The collapse in commodity prices yesterday along with warning signs from credit markets around the world should provide the only guidepost one needs to know about the Euro circus causing problems worldwide. Since 1220 did not hold on the S&P500 it now becomes overhead resistance to an upside move which should be attempted today. After that folks, there isn’t much to watch but tears as this market will only move with the news. There is no…
By John Galt December 14, 2011 – 10:57 ET No sooner than the ink did dry on my 2 out of 3 strike warning, than BOOM. Swing and amiss: (chart from FOREXPROS.com) All bets are now off without MASSIVE INTERVENTION by the central banksters. S&P 1092 could come into play rapidly unless the Forex markets are checked.
By John Galt December 14, 2011 – 10:30 ET I would call this a major concern for those who think that the European crisis is cured or that the markets can not crash in December. STRIKE 1: Gold violates 200 Day Moving Average (DMA) Next stop $1480 and a warning signal of short term deflation on the horizon. STRIKE 2: S&P 500 Violates key Support at 1220 below 50 DMA Next stop, $1152 if the markets can not recover the 50 DMA today above 1220…
By John Galt December 14, 2011 – 07:55 ET All you need to know (chart from INO.com): While everyone is focusing on the imploding EUR/USD trade, the EUR/JPY trade is far more fascinating as not only is it approaching the September-October lows, it appears that that the European Union is having to choose between which foreign currency to counter. With a reported dollar shortage in Europe and some Asian nations, the swap lines are wide open but the Euros can’t win in a multi-front war…
By John Galt December 13, 2011 – 05:20 ET Yesterday’s price action was violent yet somewhat inconsequential due to low volume other than to indicate that the 1264 level on the S&P 500 cash index is now a hard resistance area with 1220 acting as a strong support region. Consequentially, odds are this trading range will hold for another day or two until the next news driven event causes a massive move up or down in equities worldwide, probably starting in Europe as has been…
By John Galt December 12, 2011 – 05:20 ET One chart says it all. Unfortunately for equity traders, that just happens to be a chart of gold which should have soared on Friday to a climatic year end move and run at $1800 then $1900 if the markets believed that the world’s central banksters had cured the European nightmare. With the gold futures down some $26.50 as this is being written, obviously the world is voting on the lack of a Eurozone commitment to a…
By John Galt December 9, 2011 – 05:30 ET If yesterday’s decline is any indication, then today’s continuation of voting by the U.S. short term Treasuries should provide anyone with an open mind the true feelings of how large investors and nations feel about about the alleged EU resolution and the ongoing crisis since August: No my fellow readers, your eyes are not deceiving you. Just as during the heights of the 2008-2009 financial crisis, people fled all other investments and drove U.S. yields on…
By John Galt December 7 2011 – 05:40 ET Without further ado, here is your rumor selection of the day from Europe: a. Europe will create 7 new bailout programs and print faster than the Fed. b. The new Eurobond will be called the “Transformer Bond” and it will change shape, yield, and form with each corresponding drop in equities (aka the Megatron bond) c. Merkel agrees to marry Sarkozy. d. Sarkozy agrees to marry his dog. e. All of the above In reality the…
By John Galt December 5, 2011 – 07:40 ET All is well with the world once again. Santa Merkel has hung her Grinch suit in the closet and donned her stunning old school statist outfit to prove that she can out-Bernank the Fed. Sarkozy had put on the French Poodle outfit in an obedient manner as a good lap dog for Germany would be expected to do. Of course the French President has yet to move his offices to Vichy but that’s just a matter…
By John Galt December 2, 2011 – 05:30 ET I’ll keep this one brief with some numbers: Gold should head north of $1780 today, fail and pull back at the close. The BLS NFP dart board prediction from myself: +163 K U-6 Remains above 15.2% S&P 500 approaches 1265-1266 on light volume and starts to fail before the close. The main thing is to watch the 3 month US Treasury and the reaction of the financials to the drip, drip, drip of news out of…
By John Galt December 1, 2011 – 05:25 ET Now that the thrill is gone and so is the short covering rally, reality will return to the markets and in a violent sort of manner. Look for today to be a very mild trading day with weak volume and conviction compared to yesterday’s thrill ride. The markets should trade up or down within a 0.5 to 1% range at the most with 1265 on the S&P 500 cash acting as upward resistance. That number is…
By John Galt November 30, 2011 – 09:00 ET No words are necessary to tell you what is happening next, so I thought I would let the 2008 charts speak for themselves. (Click to enlarge/reduce chart size) Sept 2008 S&P 500: Aug 2008-Dec 2008 S&P 500: Sept 2008 Gold: Notice the spike as gold rallied on the dollar swap liquidity announcement. Aug – Dec 2008 Gold:
By John Galt November 29, 2011 – 05:30 ET The news this morning is simple: The EFSF is hollow and will not work. There is no grand bailout plan for the PIIGS or other European nations. France and Germany still hate each other. Poland has offered to surrender to Germany again this morning. And the United States is being led by cartoon characters. This means the S&P 500 should make another run at 1194, then 1200, and finally 1220 before capitulating once again due to…
By John Galt November 28, 2011 Live 7 p.m. to 9 p.m. EST TONIGHT: Well, I can now officially call myself a “victim” as my wife caused me great pain this weekend, but I still love her, but in reality, she deserves to be condemned to the same punishment I have for the next month (watching the Bucs). The world news is as doomerific as always if not worse. The economic news sucks. So where can I find something to smile about? I’ll Tebow on…
By John Galt November 28, 2011 – 07:20 ET After the latest rumor de jour was crushed by facts: IMF Denies Italian Bailout Package Talks The markets do not care. The Eurorumor of the day was enough to juice the futures and Asian markets overnight moving money out of the Forex safe currencies and into speculative plays for window dressing in the equities markets. The big movers were obviously EUR/USD and EUR/JPY with a nice gap in both as highlighted in this hourly chart of…
By John Galt November 22, 2011 – 22:00 ET Just a quick note before I crash for 4 hours: FUGLY. Wow. (ALL CHARTS FROM FOREXPROS.COM…click here to see all of their futures charts) U.S. Futures down hard: Down 13.10 at this posting. But what is scarey is the FOREX futures…. Aussie v. USD: Canadian Dollar v. USD: Hang-Seng Index (down 2.05% at the moment): Stay tuned, this could get super ugly with a holiday in the U.S. on Thursday and massive uncertainty about Europe’s future…
By John Galt November 23, 2011 – 05:25 ET With this morning’s 6 month T-bill auction providing the highest yields and poorest results in 14 year, all bets are off now as to how much longer the EU can hold this fictitious union together. After yesterday’s poor equity market performance in the U.S. and Europe, odds are of a dead cat bounce today which may even fail during today depending on the news flow. 1220 on the S&P 500 now becomes resistance with 1149-1154 as…
By John Galt November 18, 2011 – 05:15 ET Think the markets need a weekend breather? Perhaps it is time to take out the Eurotrash to the curb, clean up the mess being left behind and hope the EU behaves itself while the U.S. primes itself for a holiday week. The Euro currency though, which really should be trading substantially lower if not for coordinated intervention, looks as if it will be maintained above the 1.34-1.35 level moving into trading this morning which will support…
By John Galt November 17, 2011 – 05:40ET Nothing like waking up to a failed bond auction. Despite the spin, there is no other way to describe today’s 10 year Spanish bond auction where the target sale allocation was € 4 billion but they were only able to sell € 3.6 billion on weak demand and at a record high median yield of 6.745% and a high end yield of 7.08%. The Reuters headline hits the nail on the head: Spain bond sale costs soar…
By John Galt November 16, 2011 – 07:00 ET If anyone thinks the roller coaster is over with, look at this chart of the S&P futures from last night through the early morning hours and until about 6:50 a.m. EST: (all charts courtesy of ForexPros.com) So the photo at the top of this thread of the Millennium Roller Coaster or the S&P chart are pretty much identical. Please keep your hands and arms inside the car at all times and strap yourself in as the…
By John Galt November 15, 2011 – 05:15 ET (chart from INO.com) Oops. The European Union’s reserve currency is showing signs of cracking again this morning as it falls back into the 1.35 range once again and the Italian/Greek/Spanish/Irish/Portugal/Hungarian/Austrian/French debt/banking/government crisis (circle all which match today’s news) accelerates into the winter. The only thing missing is a group of alcohol filled or drug induced bums and losers marching on the stock exchanges or city halls of large cities in those nations; er, never mind, that’s…
By John Galt November 14, 2011 – 07:25 ET With the successful overthrow of the Greek and Italian governments by the powers of Northern Europe, one would think that the world would be stable and life would return to normal right? Uh, no. The adults(bond traders) are back at work today and the next two weeks are truly some of the last serious trading periods before year end. In Europe an Italian bond auction was less than enthusiastically received and indications are that investors are…
By John Galt November 11, 2011 – 05:25 ET S&P 1254 is resistance still, 1220 support. The bond market is closed today and there are many traders enjoying a day off so it means the kids will have free reign to ramp this sucker up so do not be shocked if we see a day of +12 on the S&P and 120+ on the DJIA. Adult supervision will return on Monday. Sunday night will be the key as the Yen is surging again this morning…
By John Galt November 9, 2011 – 06:15 ET UH-OH. We have an EAS test at 2 pm but on Wall Street the alarm went off early. S&P 500 futures are down a solid 26.90 as this is being typed and moving south since 0500. Meanwhile, the West’s economic future depends on a bunch of socialists who screwed their economies up to fix their economies and prevent a worldwide collapse. In the mean time, there are idiots who are trying to reassure investors around the…
By John Galt November 8, 2011 – 05:25 ET Despite record intervention, one chart has consistently been the warning signal for major market moves and forecasting the moves of financial markets worldwide: The Euro-Yen cross has been all over the board and the crash and burn started this summer then recovery due to JCB intervention has only returned the exchange rate back to where it was when the crisis accelerated in August. If this breaks again today, as it looks like it might, this could…
By John Galt November 4, 2011 – 05:10 ET The front page from the November 2, 2011 edition of Liberation pretty much sums it all up: And the chaos continues this morning. The S&P 500 achieved the technical support level of 1254 yesterday but the rally was on thin volume once again. Each rally has less breadth which is a nagging indicator to me that any bit of bad news will probably drive the markets down rapidly and violently. Gold is still building on its…
By John Galt November 2, 2011 – 07:45 ET (chart from INO.com) If gold is up, the the Bernank must be speaking today. At 12:30 ET the FOMC decision will be released and it would appear that they are about to change the ZIRP policy from panic mode to cruise control as they shift the responsibility for inflation and employment growth to the fiscal mess in D.C. and off their list of responsibilities for the immediate future. Add in the fact that they have a…
By John Galt October 31, 2011 – 07:45 ET The Way we Were Memories Light the corners of my mind Misty watercolor memories Of the way we were Scattered pictures Of the smiles we left behind Smiles we gave to one another For the way we were Can it be that it was all so simple then Or has time rewritten every line If we had the chance to do it all again Tell me – Would we? Could we? Memories May be beautiful and…
By John Galt October 28, 2011 – 05:20 ET Way, way, way, way, way back in history, our esteemed consumer of ink and paper, Federal Reserve Chairman Ben Bernanke and the central bank allegedly leaked to the member banks of that corrupt group that a pending course of action was about to occur where the discount window would be opened and Cramer’s infamous rant would result in a stick save of epic proportions as the banksters would be able to continue the Great Ponzi for…
By John Galt October 27, 2011 – 05:25 ET The big event which in reality is a non-event that the European Union announced last night was that they decided to break the backs of taxpayers in the U.S. using the IMF and in Europe by enslaving those who were not responsible for other nation’s debts into paying the price for an incompetent political union.As this crisis moves forward with Italy and Ireland needing more assistance the realization that Greece was a small problem will hit…
By John Galt October 26, 2011 – 06:30 ET The fate of the Western economies is up to France and Italy. Ugh. Meanwhile in fantasy and rigged market land, U.S. equities tanked on light volume again, but that has been the trend except during massive down moves in the market with the exception of one oversold rally. The 1 year NYSE volume versus price chart below highlights this fact: From the chart: 1. First break in August resulting in days of massive declines. 2. Oversold…
By John Galt October 25, 2011 – 05:30 ET Just a brief note this morning…. Look for the S&P 500 to cross the 200 DMA, victory declared, and everyone wondering why the public is not participating in this rip your face off rally. Then look for Europe to start their idiocy again Wednesday morning. I’ll have more commentary later on today.
By John Galt October 24, 2011 – 08:00 ET Despite the proclamations of some who smoke the hopium that America is on the road to recovery and the 20% + real unemployment rate does not matter, the divergence between our political elites and Main Street is as glaring as I have ever seen it in my life time. The Eurocircus is ongoing now with rumors about rumors being leaked from meetings on an almost hourly basis which results in temporary boosts to equities and denials…
By John Galt October 21, 2011 – 05:30 ET What a week. The markets started with the promise of a Eurozone solution by Sunday and finish the week with a promise to discuses a promise to promise an announcement on Wednesday’s meeting by Sunday. The funny thing is the PPT and Bubblemedia have some morons actually believing that the Europeans have learned how to create solvency. The proclamations the world has heard thus far are as productive and logical as the guy in Ireland setting…
By John Galt October 20, 2011 – 05:30 ET All you need to know about what is coming can be found in the charts below. Things are breaking down in Asia and Europe thus it is a matter of days perhaps when we take the lead back and head south for the winter. Gold, using the GLD ETF, is indicating a massive break about to happen below the $1550 mark, probably below $1500 (150 on the ETF approximately) in the days ahead: (click on graphs…
By John Galt October 19, 2011 – 08:10 ET Futures are all over the place this morning as yesterday’s rumor rally of the week projected that Europe would be saved for the 1,372nd time in 720 days which means that the ECB and Bubblemedia will have to redouble their efforts and create a minimum of four to five rumors today to keep this market in sucker the sheeple mode. The insanity of what the idiots are trying in Europe is being revealed as Germany had…
By John Galt October 18, 2011 – 05:30 ET The chart above is: a. A typical HFT activity chart b. The SPY for the last 4 years on a daily basis c. NFLX intraday minute by minute chart d. A Seismograph The answer is ‘d’ but it could have been any of them the way our whacky markets have behaved over the last four years. Today will be no exception. A horrid technical formation as outlined last night in the post-market postmortem told the tale…
Recent Comments