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 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 6, 2011 – 05:25 ET With the S&P news rattling the markets last night one might expect to wake up this morning to mini-stock market crashes around the globe. Nah. Everything in the U.S. equity markets indicates a flat open while Europe is only down slightly Gold cratered to $1712 overnight but is almost back to where it was around 6 p.m. ET last night and the world seems to be sitting on the razor’s edge waiting for some sort of…
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 – 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 21, 2011 – 07:15 ET With futures looking pretty ugly already, the blame game has begun. Blame the Spanish election. Blame the Italians. Blame the Greeks. Blame the ECB. Blame the extra-Constitutional super-committee. In reality these entities have been the problem all along, creating a nightmarish if not illegal Ponzi economy which as it implodes takes layer upon layer of their citizen’s wealth with them. The desperation expressed by the financial and political elites to preserve their power base and the…
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 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 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…
By John Galt October 17, 2011 – 16:45 ET Well, the musical selection was appropriate… Here is the big picture, click to enlarge/reduce the chart: The failure to break out above 1230 with volume is a nightmare scenario which is why I projected a nasty crash this month and so far, that prediction remains somewhat intact. If anyone thinks the Euros will cure squat, you’re smoking squat from the poppy fields of Afghanistan. To illustrate the damning technical formation, here are the last three…
By John Galt October 17, 2011 – 08:40 ET The market action on Friday was anemic and non-decisive which pretty much means this oversold bounce has run its course and is due to reverse again. Today will probably be that day barring a miraculous piece of news from Europe beyond the announcement yesterday that there would be an announcement on Sunday about the previous announcement which was to make an announcement as to a solution for the announcement to the crisis. In reality, Greece and…
By John Galt October 14, 2011 – 09:20 ET It’s backkkkkkk………….. Will we get a reversal today? Not necessarily, but the hanging man I was looking for last week just may have appeared today. The markets will try one more desperate attempt at 1220 on the S&P 500 cash and as you can see in the chart below, the hanging man is clear as day: If a reversal begins with the highest volume of the week, odds are we will see another long candle to…
By John Galt October 10, 2011 – 18:45 ET Do what? Yup, the NYSE website is still up. The Operation Anonymous crew did not crash the NYSE but the OTHER Operation Anonymous, aka, the Plunger Protection Team, succeeded. Here is all the proof you need that the Federal Reserve and its minions won the day in a futile effort to prevent a total collapse and purchased at least 5-7 days, at most, on taxpayer dollars: Trust me. This isn’t the superball superbull break out….…
By John Galt October 10, 2011 – 13:25 ET So the Euro has soared up to 1.36 on rumors of another deal better than the 2010 deal which cured everything? Smells link bunk to me. So the DJIA, NASDAQ, and S&P 500 have finally crossed the 50 DMA because of the Merkozy accord… Bunk. Look at the volume. So Greece is cured? Uh, Bunk: And what one stock is validating my theory that this is a bunkomania bankster desperation rally? If it smells like bunkomania,…
By John Galt October 10, 2011 – 12:00 ET I’m learning to hate the internet or at least Comcast. We get a little rain here in Florida, I lose the internet for 16 hours. It’s back now and that’s the good news. And here’s the video that should provide some insight into what is happening despite the bizarro land markets we are in the midst of today.
If I’m going Art Bell on you, you know it is going to be bad. At least ABBA music is good however… More on the Sunday night Occupy Bathroom recap.
By John Galt October 7, 2011 – 05:30 ET With Europe temporarily off of the front pages, that leaves their banksters alone to commit Eurocide and allow the markets to focus on the U.S. non-farm payrolls report. As the S&P 500 slammed into a short term resistance area around 1164-1165 yesterday, I figure a spike towards the 1180ish 50 DMA might occur if the NFP shocks everyone or provide the markets an excuse to take profits and resume selling should the number disappoint. The consensus…
By John Galt October 5, 2011 – 07:50 ET If I were a betting man, wait a second I am one, I would wager we see a weak rally this morning at some point during the early session on weak volume. Then as the afternoon grinds on we begin to drift lower finishing slightly above yesterday’s close leaving a damning “Hanging Man” pattern for the markets to digest (See Investopedia explanation at this link). This would be a perfect mirror to parallel the disaster of…
By John Galt October 4, 2011 – 05:25 ET (Chart via INO.com) Technically speaking the U.S. equity markets are due for a bounce even as the European and Asian markets continue to implode. The news that the Franco-Belgian bank Dexia is in trouble and possibly facing a break up due to their faltering portfolio and the fact that the Euro continues to collapse versus the dollar could possibly provide further downside action today but I think the Plunger Protection Team intervenes and causes a brief,…
By John Galt October 3, 2011 – 15:20 ET Just look at the arrows. No further comment is necessary as this isn’t even a capitulation move….. Snapshot from the Wall Street Journal Market Data page:
By John Galt September 30, 2011 – 05:15 ET Ugh. On Tuesday’s radio show I outlined how the coming stock market crash will drastically impact the U.S. and world economies and the severity of what October’s nightmare might mean to the average citizen in the U.S. Needless to say, I did not paint a picture of unicorns flying overhead spewing rainbows and Skittles out of their rears. The stock markets are now technically set up for a 25-35% decline in October, most of which I…
By John Galt September 25, 2011 – 23:00 ET The Historical Circle of Economic Mistakes is now Complete For once in my life, I wish I had some doubts as to my calculations and ideas being incorrect. While many may disagree with the conclusions I have ascertained, the truth is that the macro or big picture review from a historical perspective appears to have repeated itself right down to the arrogance of the financiers and the ignorance of the political elites. For the loss will…
By John Galt September 22, 2011 – 21:30 ET Ah yes, who can forget that Jib-Jab video I created back in 2009 with the dancing Bernanke: Well, old Ben just danced America and the West into a major recession to validate his theories and seize more power for the banksters this week. The move in the markets today was brutal, sharp, but not terminal. The headlines from some of the mainstream financial media reflect that fact: Bloomberg 9/22: Stocks Fall But Investor Panic Could Soon…
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