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Critical 55-DMA Support About To Be Taken Out

Tyler Durden's picture





 

Keep a very close eye out on the 55 DMA. As John Noyce pointed out over the weekend, this is the most important support level for the S&P, which has been above the 55 DMA for about 132 consecutive days. Should this be taken out, and we are about 1 point away from it, the freefall below it (at least for those who believe technical analysis) will make a few heads spin. Next support: 1,174.

As a reminder, here is why the 55 DMA is so critical: something lik 132 consecutive days above it.

 

 


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Thu, 03/10/2011 - 10:42 | Link to Comment CPL
CPL's picture

I have three consoles running here.  WTF is going on at the markets right now.  Is it halted?  Numbers from all three subscription feeds are fucked up.

Thu, 03/10/2011 - 10:43 | Link to Comment CPL
CPL's picture

Anyone else noticing that the baords are all screwed up right now?

Thu, 03/10/2011 - 10:45 | Link to Comment fuu
fuu's picture

yes.

Thu, 03/10/2011 - 10:45 | Link to Comment CPL
CPL's picture

I think they just halted the markets.  Can't pull any quotes now.

Thu, 03/10/2011 - 11:06 | Link to Comment fuu
fuu's picture

I think it was just a data feed error/obfuscation.

Thu, 03/10/2011 - 13:03 | Link to Comment French Frog
French Frog's picture

it's always a good idea to have data feeds from at least 3 different providers, ideally each located on a different continent; i did notice a 5 seconds glitch on my US feed but my european and asian ones were completely unaffected

Thu, 03/10/2011 - 10:46 | Link to Comment Catullus
Catullus's picture

My orders won't fill. Totally fucking liquid.

Thu, 03/10/2011 - 10:46 | Link to Comment CPL
CPL's picture

Same here.  TD, Think or Swim and eTrade are locked.

Thu, 03/10/2011 - 10:50 | Link to Comment gmrpeabody
gmrpeabody's picture

My order went thru ok on a small account in Fidelity.

Thu, 03/10/2011 - 11:07 | Link to Comment Josh Randall
Josh Randall's picture

Is it snowing in your office ? Is today a school holiday ?

Thu, 03/10/2011 - 10:45 | Link to Comment malikai
malikai's picture

Everything's crazy right now. Are nukes flying?

Thu, 03/10/2011 - 10:49 | Link to Comment CPL
CPL's picture

Something is going on.  Can't find anything though.  network problems again between point A and B maybe

 

TNA would have been a good play today with the big drop on open though.  Oh well.

Thu, 03/10/2011 - 11:50 | Link to Comment Bob
Bob's picture

Great day for TZA, though: Pushing +8% right now.  Strange, with oil falling on a stronger $; it doesn't appear that the correlations are holding. 

Thu, 03/10/2011 - 11:57 | Link to Comment CPL
CPL's picture

Agreed, considering what TZA represents, the market is hardly a bastion of sanity anymore.

Thu, 03/10/2011 - 10:46 | Link to Comment Birddog
Birddog's picture

my charts seemed to pause a bit...thought it was my connection

Thu, 03/10/2011 - 10:57 | Link to Comment CPL
CPL's picture

Weird, even Forex isn't updating.  Usually the morning open and the USD/CDN is jumping around like a six year old after drinking a redbull.

 

It's like everything is out of sync...if that makes sense.

Thu, 03/10/2011 - 11:46 | Link to Comment chistletoe
chistletoe's picture

I was able to close out my GM short.

 

You guys must be trying to sell.

They will accept buy orders, just not sells....

Thu, 03/10/2011 - 10:43 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

The Fed will just double down on the POMO over the next few weeks. Remember that we're expecting the new schedule later today. Let's see if it's front loaded.

Thu, 03/10/2011 - 10:54 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Exactly.  Technical, schmecnical.  Benny gots this.  We all need to go buy some C, BAC, AMP, AMZN, and AAPL.  This is a great Fucking Dip to Buy. 

Thu, 03/10/2011 - 11:18 | Link to Comment SWRichmond
SWRichmond's picture

No, they're going to "exit" soon, remember?  Can't you get your story straight?

Fed Gives Markets Clues on Exit From Unprecedented Easing

http://www.bloomberg.com/news/2011-03-10/fed-giving-credit-markets-clues...

Remember, we have a strong dollar policy.  We give it lip service everytime we need to or think we can get away with it.

Thu, 03/10/2011 - 14:14 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Maybe I should just close my eyes and randomly hit stock symbols and the "buy" and "sell" buttons. Or get the monkey suited up to play "Stock market shoots and ladders" like back in the 90's.

Thu, 03/10/2011 - 11:44 | Link to Comment RoRoTrader
RoRoTrader's picture

That is a very astute observation and right off the 55.

Thu, 03/10/2011 - 10:44 | Link to Comment gordengeko
gordengeko's picture

Looks like there was a reason for that tremendous volume in TWM lately.

Thu, 03/10/2011 - 10:42 | Link to Comment Tulli
Tulli's picture

Price target: 1.190 area, before the end of March, then another run up.

Thu, 03/10/2011 - 10:44 | Link to Comment X. Kurt OSis
X. Kurt OSis's picture

T3H B3RNaNK WUZ R0Ng!!!

 

H3LP M3 T1MMAY!!!

Thu, 03/10/2011 - 10:46 | Link to Comment Johnny Lawrence
Johnny Lawrence's picture

Why is the 55 so important, when it appears the same is true for the 50 DMA?

Thu, 03/10/2011 - 11:40 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Because the double nickel was institutionalized back during the OPEC oil embargo and gas shortages of the 70's. This is why the young traders are ultimately gonna get monkey hammered. They don't know about CB radios and "breaker breaker one nine", critical info to have in today's market.

Thu, 03/10/2011 - 11:55 | Link to Comment lilimarlene1
lilimarlene1's picture

Only get half of that, but the half I got was damned funny.

Thu, 03/10/2011 - 12:06 | Link to Comment RockyRacoon
RockyRacoon's picture

10-4 Good buddy.

Ooops, that wasn't so cool was it?

Thu, 03/10/2011 - 12:25 | Link to Comment cbxer55
cbxer55's picture

10-4 good buddy!  LOL   ;-)

http://www.youtube.com/watch?v=HWO_AIh8drk

Thu, 03/10/2011 - 10:47 | Link to Comment Henry Chinaski
Henry Chinaski's picture

Looks like it hung up at 1299 for a while and recovered. Trading day is over now, but not too late to BTFD.

Thu, 03/10/2011 - 10:49 | Link to Comment Joeman34
Joeman34's picture

Yeah, who still believes technical analysis is worth a sh*t???

 

We'll probably close green today...

Thu, 03/10/2011 - 10:50 | Link to Comment mynhair
mynhair's picture

I'll believe it when AAPL goes under $300.

Thu, 03/10/2011 - 10:50 | Link to Comment mendigo
mendigo's picture

maybe pimpco is positioning to by the dip

maybe its on

Thu, 03/10/2011 - 10:51 | Link to Comment Boilermaker
Boilermaker's picture

HERE COMES THE CALVARY!!!

MIRACLE MYSTERY RALLY ENSUES!!!

 

Thu, 03/10/2011 - 12:06 | Link to Comment RockyRacoon
RockyRacoon's picture

Yeah, getting all evangelical might work:  Pray for some help.

But the cavalry might "save" you instead.  Go, Custer.

Thu, 03/10/2011 - 10:52 | Link to Comment Sudden Debt
Sudden Debt's picture

looks more like the november patern to be repeated to me...

 

Thu, 03/10/2011 - 10:53 | Link to Comment CPL
CPL's picture

Yup.  Going to make a coffee and see what this looks like in an hour.  Can't trade if I can't buy anything.

Thu, 03/10/2011 - 11:22 | Link to Comment Sig Sauer
Sig Sauer's picture

try selling first?

Thu, 03/10/2011 - 11:28 | Link to Comment CPL
CPL's picture

Don't hold anything longer than a couple of hours these days.  All my positions are closed as of yesterday at around 1:30.  Holding anything longer than a couple of hours is a good way to get killed trading.

Thu, 03/10/2011 - 10:52 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

Wow.....Nice.....Manipulation in a picture.....
Frame it on up.

Thu, 03/10/2011 - 10:53 | Link to Comment X. Kurt OSis
X. Kurt OSis's picture
As reported on Bloomberg: Dimon, Pandit, Blankfein, Ackermann Join Kremlin Advisory Board

I almost thought this was a joke... 

http://noir.bloomberg.com/apps/news?pid=20601087&sid=adxTfegoxk3U&pos=7

Thu, 03/10/2011 - 11:12 | Link to Comment AN0NYM0US
AN0NYM0US's picture

+1 great find

 

The article even looks like a fake with that mug shot of Lloyd - Amazing

 

 

Thu, 03/10/2011 - 11:30 | Link to Comment gmrpeabody
gmrpeabody's picture

You couldn't make this sh_t up.....

It's very telling.

Only problem is, I don't know what it's telling me.

Thu, 03/10/2011 - 12:10 | Link to Comment RockyRacoon
RockyRacoon's picture

They're buying up the whole country.  They have to go somewhere when they see the torches and pitchforks coming down the road.   New heli-pad installed on the roof of the Fed building to get them outta Dodge in a hurry.  Russia will welcome them as liberators, Cheney says so.

Thu, 03/10/2011 - 12:32 | Link to Comment dark pools of soros
dark pools of soros's picture

did all the Bolsheviks ever leave?

Thu, 03/10/2011 - 14:26 | Link to Comment RockyRacoon
RockyRacoon's picture

Don't know... don't care.  My Russian is rusty.   I lied, it's non-existent.

Thu, 03/10/2011 - 12:26 | Link to Comment X. Kurt OSis
X. Kurt OSis's picture

I can't get over this. Our TBTF bankers teaching a former communist country how to centrally plan the economy. We are through the looking glass... This is how deep the rabbit hole goes.

Thu, 03/10/2011 - 14:14 | Link to Comment Henry Chinaski
Henry Chinaski's picture

Brilliant!  Whose idea was that and what took them so long to figure it out?

Ruskies play hardball and those guyz better hire food testerz. 

Thu, 03/10/2011 - 10:55 | Link to Comment johnnymustardseed
johnnymustardseed's picture

FED  will go long tomorrow

Thu, 03/10/2011 - 10:55 | Link to Comment equity_momo
equity_momo's picture

Please dont tempt fate - the fate being stocks rip higher in a day or two.  Most sane people want to buy a bargain , not chase rapidly appreciating prices.  Everytime we think markets are going to start pricing in the real economy we get some nonsense out of the Fed.  Id love if it ZH could try to fool the Mocking Gods and post some positive stuff - then we are sure to see a "correction"

Thu, 03/10/2011 - 10:56 | Link to Comment Agent P
Agent P's picture

Will there be mass protests in the Saudi sandbox tomorrow. 

If yes, I think I will watch from the sidelines today.

If no, than I definitely want to BTFD.

Any guesses?

Thu, 03/10/2011 - 10:58 | Link to Comment Hedgetard55
Hedgetard55's picture

Looks like ZH missed the announcement by the SEC. No selling at lower than your basis price.

Thu, 03/10/2011 - 10:59 | Link to Comment Tulli
Tulli's picture

Of course that TA is irrelevant in a market like this.

Nevertheless, what could serve the interventionists better than a nice pullback over geopolitical risk to justify "further measures".

I can hear them already: we thought that QE2 was enough, but given the negative effect that the geopolitical situation had on markets, and the fact that it has endangered the course of a yet fragile recovery, we are now forced - against our earlier plan - to extend our support vi QE3, there by promoting the creation of jobs...

It's all good!

Thu, 03/10/2011 - 11:07 | Link to Comment cosmictrainwreck
cosmictrainwreck's picture

absolutely. and failing that they can always scream "nashunul suckurity" and maybe make it illegal for ES to go below 1000....... or maybe require Dow to grow at 8%

Thu, 03/10/2011 - 11:03 | Link to Comment alien-IQ
alien-IQ's picture

ladies and gentlemen, let's give a warm round of applause for our newest member into the club of pissed off nations people...Croatia.

The masses have taken to the streets of Zagreb, Rijeka, Split and ?akovo. As they marched through the streets of their cities, demanding change, they were joined by a large number of curious passers-by who were suddenly drawn to this spontaneous expression of discontent. The illusory “alternatives” of the official opposition provide little solace and now a wave of anger, action and revolt against social injustice, increasing unemployment and corruption, against the ruling class thieves, has swept the country.
http://news.infoshop.org/article.php?story=20110308035502781

Thu, 03/10/2011 - 12:15 | Link to Comment RockyRacoon
RockyRacoon's picture

And more, sounding like they are from Wisconsin:

While they “heroically” proclaim themselves as our leaders, we say – No! The people cannot be represented, the masses cannot be lead by anyone but themselves and their autonomous organizations. One woman shouted at a protest ...: “You have to fight for your rights! You should organise meetings like this in your local communities, the system has to be destroyed from below!” And she was right. Only a truly libertarian spirit can end all the injustice that surrounds us. And thus we support, as we always have, and state as our own principles both in theory and action - solidarity and direct democracy, autonomous struggle and self-organisation. In these early days of March, principles so dear to any libertarian emerge slowly, but resolutely out of the frozen city concrete.

Thu, 03/10/2011 - 11:07 | Link to Comment savagegoose
savagegoose's picture

i see all major markets  down 1-2% and USDx up .6%

Thu, 03/10/2011 - 11:13 | Link to Comment silvertrain
silvertrain's picture

yep, both the fste and dax are getting smoked..

Thu, 03/10/2011 - 11:21 | Link to Comment william the bastard
william the bastard's picture

I see dead people

Thu, 03/10/2011 - 14:26 | Link to Comment RockyRacoon
RockyRacoon's picture

Can I borrow your crystal ball?  I've got some horses at Oaklawn I'd like to follow up on.

Thu, 03/10/2011 - 11:06 | Link to Comment mynhair
mynhair's picture

Squeeze that dog doo NFLX!

Thu, 03/10/2011 - 11:05 | Link to Comment ArvUK
ArvUK's picture

EURJPY hardly moved within its 25pt range all the while USD moved and Cable tanked.  Very strange.  Something is definately going on or being kept from public ears/eyes.

 

Thu, 03/10/2011 - 11:14 | Link to Comment firstdivision
firstdivision's picture

Reverse Repo?

Thu, 03/10/2011 - 11:06 | Link to Comment Johnny Lawrence
Johnny Lawrence's picture

S&P still hanging in there... According to my screen... 50 DMA is 1298.5

Thu, 03/10/2011 - 11:10 | Link to Comment stormsailor
stormsailor's picture

it would have to close below the 55 dma (actually, i've always used the 50 dma).  that is how charting use to be done anyway.  it hasn't really worked in 2 years.

 

even if it were to happen,  be careful. it could be an incredible head-fake opportunity for the plunge protection team to empty your trading account.  keep your powder dry, and your stops tight.

Thu, 03/10/2011 - 11:12 | Link to Comment Caviar Emptor
Caviar Emptor's picture

This sell off is the equities version of PIMCO's US Treasuries sell off. 

The elephant standing in the room: Mr Bermunkey, are we going to have QE3? 

If not, sayonara twerp. 

Thu, 03/10/2011 - 11:13 | Link to Comment clones2
clones2's picture

The 50 DMA is used by a vast majority of traders and its now been breached for the nasdaq, RTH, XLF etc... etc... etc...

Going to be a brutal next 5-7 sessions

Thu, 03/10/2011 - 11:13 | Link to Comment savagegoose
savagegoose's picture

im looking at world markets on here

http://netdania.com/Products/live-streaming-currency-rates-foreign-excha...

 

has nasdaq100 down 1.6% at 2295

djia 30 at just ovwer 12000 down 1.6% also

Thu, 03/10/2011 - 11:12 | Link to Comment sbenard
sbenard's picture

QE3 and more Dollar devastation right around the next Quarter.

Thu, 03/10/2011 - 11:15 | Link to Comment savagegoose
savagegoose's picture

yeah gold and silver taking a thumping to, silver down %3, gold over %1 or 16$

Thu, 03/10/2011 - 11:32 | Link to Comment johnQpublic
johnQpublic's picture

further it drops, more i can buy

c'mon gravity....

Thu, 03/10/2011 - 13:00 | Link to Comment Saxxon
Saxxon's picture

I backed into cash last week.  I knew somehow, someone was going to find a way to tamp down commodities and here it is.  I am staying my hand from buying DGP/AGQ here (my favorite table) though because it looks too obvious.

Thu, 03/10/2011 - 11:15 | Link to Comment Johnny Lawrence
Johnny Lawrence's picture

NASDAQ getting smizzoked.

Silver down 3% too.

Thu, 03/10/2011 - 11:15 | Link to Comment Hedgetard55
Hedgetard55's picture

Yes, the market is going to call Bernanke's bluff on QE3, one way or the other.Tthey can't wait to know until May, Ben.

Thu, 03/10/2011 - 11:23 | Link to Comment SWRichmond
SWRichmond's picture

yup

Thu, 03/10/2011 - 11:15 | Link to Comment Hedgetard55
Hedgetard55's picture

Yes, the market is going to call Bernanke's bluff on QE3, one way or the other. They can't wait to know until May, Ben.

Thu, 03/10/2011 - 11:16 | Link to Comment Johnny Lawrence
Johnny Lawrence's picture

S&P is through the 50 DMA

Thu, 03/10/2011 - 11:26 | Link to Comment Sig Sauer
Sig Sauer's picture

check the charts...breached 50dma just barely (like now) two days straight in late Nov before blasting off for another ~150pts

Thu, 03/10/2011 - 11:18 | Link to Comment clones2
clones2's picture

Nothing secret going on here....  this pattern has set up over the past 2 weeks.  Huge selloff when the Nasdaq broke the 50 DMA.  Looks like the $SPX is too.  $INDU setting new short-term lows...

It's a purely technical breakdown...  The news is just noise. 

Thu, 03/10/2011 - 12:17 | Link to Comment RockyRacoon
RockyRacoon's picture

...said the fella whistling past the graveyard.

Thu, 03/10/2011 - 11:22 | Link to Comment eurusdog
eurusdog's picture

Bernanke just BTFD!

Thu, 03/10/2011 - 11:23 | Link to Comment tao400
tao400's picture

Didn't the retail investor start piling in recently. They drove the market up just to take his money. what a fool.

Thu, 03/10/2011 - 11:23 | Link to Comment max2205
max2205's picture

Ben et all are selling naked oil in hopes of containing the downdraft...imagine if oil was up 5% today like it should be?

Thu, 03/10/2011 - 11:27 | Link to Comment Johnny Lawrence
Johnny Lawrence's picture

Actually, I think a market crash is going to take care of all these inflationary pressures, i.e oil, cotton, etc.

Thu, 03/10/2011 - 12:07 | Link to Comment firstdivision
firstdivision's picture

It will also make a good time to buy gold/silver as it will drag those prices down to.

Thu, 03/10/2011 - 11:28 | Link to Comment Sig Sauer
Sig Sauer's picture

does seem kind of wacky for oil to be down ahead of tomorrow's day of rage

Thu, 03/10/2011 - 13:10 | Link to Comment Saxxon
Saxxon's picture

Sig, I don't even bother to pound the table on this.  The Day of Rage is a twitter-induced fantasy.  Adults are still in charge.

Thu, 03/10/2011 - 11:28 | Link to Comment mogul rider
mogul rider's picture

The PIMCO sell was clearly bigger than anyone thought.

It is not like the crash wasn't telegraphed.

We all knew it was coming why are you freaking out people?

 

relax The Chairsatan went for a crap, he'll be back soon enough

Thu, 03/10/2011 - 11:28 | Link to Comment savagegoose
savagegoose's picture

a major rush for liquidity?

Thu, 03/10/2011 - 11:34 | Link to Comment mogul rider
mogul rider's picture

Yeah really,

 

You take 56  billion off the table and the world finally notices.

Man what a fucked financial sector and investor group we have today.

 

 

Thu, 03/10/2011 - 11:29 | Link to Comment buzzsaw99
buzzsaw99's picture

The next support is when Lloyd and Jamie say it is.

Thu, 03/10/2011 - 11:38 | Link to Comment earlthepearl
earlthepearl's picture

bingo

Thu, 03/10/2011 - 11:31 | Link to Comment mogul rider
mogul rider's picture

Like some of us said, the flations will be sporadic based on the Japanese model

The new inflation fighter in the Fed arsenal is deflationary collapses intermixed with 1000 dollar corn and 10,000 dollar silver.

No worries just buy and sell as you fly by your targets either way. You won't hit your sell or buy but at least you'll feel like you are on a thrill ride.

Whatever you do though, don't pretend that you actually know what the fuck they are doing.

Cause you don't

Thu, 03/10/2011 - 11:35 | Link to Comment QuantumCat
QuantumCat's picture

The DJIA (/YM) held above it's 55 day... if it breaks(11,911), you have confrimation across all major indices.

Thu, 03/10/2011 - 11:35 | Link to Comment paddy0761
paddy0761's picture

Well the 1297 55Day MVA may have been taken out, but the Feb 24 low of 1294 has held so far. Unless that gets taken out, I don't think you'll see any real fireworks.

 

If 1294 does get taken out, it might get interesting.

Thu, 03/10/2011 - 11:47 | Link to Comment stormsailor
stormsailor's picture

back in the day, i would have set a /es short at 1294.50 with a stop out at 1295.50. right now,  if it breaks up, i loose a point, but if she breaks down its money time.

 

i called it an "ambush"

Thu, 03/10/2011 - 11:54 | Link to Comment buzzsaw99
buzzsaw99's picture

the maggots can see your stops.

Thu, 03/10/2011 - 13:13 | Link to Comment Saxxon
Saxxon's picture

+1 buzzsaw hence no more electronic stops for me.

Thu, 03/10/2011 - 11:53 | Link to Comment Johnny Lawrence
Johnny Lawrence's picture

And with that, you would have been stopped out.

Thu, 03/10/2011 - 12:08 | Link to Comment stormsailor
stormsailor's picture

back in the day, i wouldn't have physically set a stop, but would have the buy set and ready to execute. so they couldn't see to sweep me. bad i know, sometimes you take a huge candle right in the bunghole.  but if you hit 2 out of 5 in a day, you could make good money

Thu, 03/10/2011 - 12:35 | Link to Comment walküre
walküre's picture

Last ditch attempt at trying to save a sinking currency.

Pull the plug on the markets in a concerted effort, drive down commodities and pray, hope that investors pile back into UST, or any USD backed paper in their precarious "flight to safety".

The dead cat bounce is out of the bag. The USD is fucked and nobody wants it anymore.

US is broke on federal, state and municipal levels.

Trade accordingly.

Thu, 03/10/2011 - 13:02 | Link to Comment HedgeFundLIVE
HedgeFundLIVE's picture

not a fan of using DMA, but that said... i'll say THIS again, as hopefully this time i'll get a better response- short this market! names i'm looking to short: http://www.hedgefundlive.com/blog/short-this-market-ill-say-it-again-which-names-to-short

Thu, 03/10/2011 - 13:06 | Link to Comment Armando Javier ...
Armando Javier Finkeltein of the Boise Finkelsteins's picture

I think the 63 1/4 day average is more important.  Or maybe the 69.

The head and shoulder formation has lost revelance.  The head,cock and pussy pattern is much more powerful and reliable.  The inverted is infallible.  If you are in postion for the inverted you can't lose

Thu, 03/10/2011 - 13:07 | Link to Comment paddy0761
paddy0761's picture

 

This charade is not over; yet. The SPX is holding above 1294 and the HUI is holding above 530. Inflation is still in control, although the grip is tenuous.

Spot gold would have to trade below 1308 to even raise an eyebrow.

This action is a total yawn. The DXY is a complete irrelevance below 79. Below that level, it is a one way ticket south.

Above that level, you'd better get out Grandma's recipe for grass soup.

so I think.

 

Thu, 03/10/2011 - 13:58 | Link to Comment Grand Supercycle
Grand Supercycle's picture

The very overdue Wile E. Coyote correction has arrived and a substantial leg down has begun in my opinion.

 

http://stockmarket618.wordpress.com

 

Thu, 03/10/2011 - 14:10 | Link to Comment Hugh_Jorgan
Hugh_Jorgan's picture

I love that chart...

Naw... There's no Viagra in use there...it's all natural...no, REALLY!

 

Do NOT follow this link or you will be banned from the site!