Everything is proceeding exactly as I have foreseen – Emperor Palpatine
In Monday’s post I said: “we really would like to see a little volume consolidation before we make another run at the 1,150 line on the S&P” and we zigged and we zagged until yesterday’s close where “THEY” punched it up to EXACTLY the 1,150 line (see Dave Fry’s chart) where we, of course, failed – because it’s all a load of BS end-of-quarter window dressing but HEY – 1,150, how about that!?! 1,150 is the 7.5% line on the S&P (see Monday’s chart) and that goes hand in hand with Dow 10,965 (not there yet), Nasdaq 2,365, NYSE 7,280 and Russell 672.
As I mentioned yesterday, our betting is still all over the place as we may go up on a technical breakout or we may go down and the fulcrum for the markets is currently the dollar, whose devaluation relative to the exchange value for a stock certificate is responsible for the vast majority of our recent market. We’re positioned bearish in that we have 10:1 bets made to the downside on some ultra hedges so we will be thrilled with a pullback but, on the whole, we’re still really just protecting our bullish bets – even our review of the September Dozen this weekend couldn’t find too many reasons to take the money and run as we just didn’t look weak enough to quit on our most bullish trade ideas.
Our overriding concern is that Japan makes good with their promise to intervene on the Yen, which will boost the buck, knock down commodities and tank the markets. Why is that not happening? Well our own Government is doing everything they can to de-value the dollar. We talked out quantitative easing yesterday and GS issued a report yesterday saying there was NO CHANCE that the Fed would raise rates and, in fact, they may even lower rates to ZERO.
Now, I don’t know about you but I’m holding out for when the government PAYS ME to borrow money. Maybe then I’ll be willing to let them lend me $1Bn as long as they pay me $2.5M a year to hold onto it. Our greedy little IBanksters couldn’t wait though, and they rushed out and borrowed another $500M from the Fed yesterday (POMO) at the outrageous rate of 0.25%. How are the poor little Banksters ever going to hide all the non-performing mortgages if…