“Somebody” Bought Stocks on Thursday Because “Somebody” is Terrified

Phoenix Capital Research's picture

 

“Somebody” moved in to support stocks last week on Thursday.

 

The 50-DMA has become the “line in the sand” on the S&P 500. Anytime the market has come close to breaching this level in the last few months, “someone” has stepped in and propped the market up.

 

 

It’s pretty clear who the “someone” is. Given that the Fed is openly citing the stock market as an indication that QE is working… and given that every other metric shows QE is a total failure…

 

With that in mind, last Thursday’s action and the follow through Friday should be seen as a clear intervention.

 

This will end very very badly.

 

·      Margin debt levels (meaning debt that investors take on to buy stocks) are at record highs.

 

·      Hedge fund stock ownership is at levels last seen before the 2008 Crash.

 

·      We’ve had multiple Hindenberg Omens (signs of a potential Crash).

 

All of the signs are in place: the market has become a complete bubble. When you compare the market to its fundamentals, it’s arguably an even worse than the bubble that brought about the 2008 collapse.

Take a look at the divergence between stocks and Copper. Stocks could fall over 20% before they’d realign.

 

For insights on how to prepare your portfolio for this, visit us at: 

http://gainspainscapital.com/protect-your-portfolio/

Best Regards

Graham Summers

 

 

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are we there yet's picture

For years now has shown that logically the market should crash and correct imballances. It continues to go up. The power of the central planners passeth all understanding as they do gods work. The economy is being hollowed out more each year.

Lmo Mutton's picture

FU NSA cumgobblers with no gf

no that n korean tranny you are dating is NOT a woman u dork

rsnoble's picture

Anyone that knows technicals can see where the market has been saved time after time after time.  It's way past being obvious.

Mr. Saxby's picture

Given that the Fed is openly citing the stock market as an indication that QE is working… and given that every other metric shows QE is a total failure…

If you realize that entire purpose of QE was to further enrich the rich, then it's easy to see what a success it's been. When has a corporation ever wanted to see low unemployment? That would likely never. Since the owners of corporations, the gov't, and the Fed are one in the same, why would anybody expect anything different?

TheReplacement's picture

One would think corporations would want low unemployment.  If unemployment is high who will by the widgets?

kurt's picture

This is a first. "Something" prevents me from up arrowing your comment. Has the fukin' Skynet awakened?

Conax's picture

It's probably because the first line is italicized.  For some reason this can prevent greening.

Bear's picture

Bonds (30y) keep sinking ... on the low of the day

Zero Govt's picture

the entire Western Worlds Govt Bonds would be drowned as of 3 years ago if it weren't for the monopolists of money, central bwankers, buying them all

the British Bond market (cough) alone is propped up to the tune of 90% of Bonds being bought by that dribbling clueless cretin, Mervyn King, at the BoE 

so much for living in a capitalist society eh...did Communism ever get this bad/centrally faked ?!!

Mesquite's picture

So, what's the problem..

I am grateful for visible trends..

Buy @ the 50dma, sell at the stall (maybe)..

Take profits, and invest wisely..

Quit the whining..

Be safe/well..

And don't forget the old saying..

Don't put all your eggs in one basket..

 

orangegeek's picture

There's not a technical indicator of any kind that works right now.

 

Everything is up regardless.

 

The divergences from anything to do with reality are unfucking believeable.

 

50MA - who gives a fuck - go long - ride this fake bull hard.

auric1234's picture

You need to trust the system if you intend to make a profit going long.

If your intent is cashing out in dollars, you need to trust the dollar will be worth something when you cash out.

If your intent is cashing out in real money, you need to trust the dollar's redeemability when you cash out.

Me, I trust neither. I bet with the fundamentals, and stick to my bet. This helps me sleep well at night.

 

Bear's picture

Most technical indicators still work ... just in the opposite direction

DeadFred's picture

I can't find a single time when a major index hit a top then went staight into a sharp correction. A 50% rebound is of no concern for the bears. When this turns south again and doesn't form a "V" bottom that's when you'll know the fan is about to get dirty and smelly. Another drop followed by a flat bottom would be a good time to consider short dated OTM puts.

Make that a major US index in case someone wants to mention recent price actions in Japan LOL

Conax's picture

"MERRINNN!!!"

The Chair Satan props it up.  It floats above the bed like Regan while the priests shake Holy water at it and chant,

the power of Christ compels you-

the power of Christ compels you-

the power of Christ compels you-

 

maskone909's picture

hahaha thats pretty fuckin funny man! +1

carlnpa's picture

Exchange Stabilization Fund - Gold Reserve Act = 1934

Lewshine's picture

Absolute control of everything (and the Fed has that in spades), means nothing can be left to chance, OR actual fundamentals. Therefore, the only thing that stops a corrupt casino is a cop - which the Fed has eliminated, along with any other oversight. Which means, this could go on forever.

We are all growing old waiting for this thing to collapse as it should - As long as rule and law are dismissed with prejudice, we can and will see 20 more years of this garbage.

auric1234's picture

They can play all they want, until the music stops. And the music stops when they run out of gold.

One of these days we're going to have a lot of fun. I hope you have your chair already!

 

Blue Horshoe Loves Annacott Steel's picture

Heh, the buyer and the seller are now the same person!

Meanwhile, Asian governments buy up gold on the cheap thanks to the morons in the US gubment.

Longing for the old America's picture

Gee, I thought every trade had both a buyer and a seller.

 

 

digitlman's picture

Conjecture is fun!

Divine Wind's picture

 

 

Gravity sucks.

Zero Govt's picture

what goes up must come down

luckily Bernanke is a chubby and his arse should cushion the blow

willwork4food's picture

I don't think so. As far as equities are concerned they have as much money as they can print to fund its rise; just look at Zimbabwe's SM during hyper inflation. Of course when peeps start pulling it out and spending it into the local economy, that could create a slight problem.