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Here's the Snapback... Next Up New Lows
The mainstream financial media is out saying that the Fed’s new language pertaining to interest rates was the reason for yesterday’s ramp job. It’s pretty amazing to see given that the market actually CRATERED after the Fed announcement.
Indeed, the ramp job came in rather suspiciously at the close. And it smells an awful lot like manipulation to me. Do you really think that buyers stepped in and forced a 600 point price swing on the Dow in a little over one hour because the Fed wants to maintain ZIRP and extra year or two? How has ZIRP worked out so far?
The reality is that stocks were sharply oversold and due for some sort of a bounce. The fact that this bounce came fast and furious due to what is clearly manipulation (not real buyers) says a lot about just how dangerous the financial system is today.
Remember, nothing goes straight up or straight down. So there are going to be sharp bounces during this collapse. This was certainly the case in 2008. In fact, during the two months of October-December we had three sharp rallies of 11%, 17%, and 20% respectively. Every time the market rolled over hard soon afterwards.
Now, regarding this latest drop in the markets, does this chart really look like a minor stock market correction that will be followed by a new bull market?
Make no mistake, this bounce has all the hallmarks of a snapback rally. But the Great Crisis is anything but over. Indeed, I fully expect we’ll be at new lows within the next few weeks as we head into the Fed’s Jackson Hole meeting.
On that note, I’ve just published a five-report series devoted to detailing precisely what steps to take to prepare your personal finance and loved ones for what’s happening.
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§ Which two inflationary investments will perform best as the US Dollar implodes (one of them handpicked by an investing legend).
§ How to prepare and profit during the coming US debt default, and…
§ How to prepare you family and loved ones for the coming civil unrest, food shortages, and more (including what supplies to buy, where to buy them, and what prices you should pay).
All in all we’re talking about over 30 pages of actionable tips and strategies covering all the bases for surviving the ongoing financial and economic carnage. I’ve yet to see anything as detailed, specific, and wealth preserving out there.
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Good Investing!
Graham Summers
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"The best, easiest way to turn market collapses into triple digit gains."
How about buying C Aug 40 puts at $140/contract on 5/19 (now $1100/contract-so rapidly approaching 4 digit gain territory)? Was that in your report that I failed to read? Lucky I can think for myself. I find that skill much more useful than any financial asset, even gold.
Here's some advice: it might be too late to chase naked puts on anything right now at this volatility level. Do nothing except breathe. As for me I'll think I'll just roll my C puts out and down to Nov P34s sometime next week and take some profits off the Table (I'm trying to battle my greedy tendencies). Somehow, seeing more even relatively worthless fiatscos in your account which you know will likely be taken over by the government (will they exercise my C puts to unload some of their C holdings at $40/share-oh the irony?) is psychologically satisfying.
Sorry I can't offer any "actionable" advice except "don't gamble with more money you can afford to lose, exercise every day, and vote and support Ron Paul in 2012" Without sound, gold backed money there can't be any real economy and Ron seems to one of the few that understand this.
Here's another insight: When we're right we all think we're a genius (note the gloating tone of this comment), but its usually luck or randomness in the universe. And we're all easily fooled by randomness (Taleb). But I'm still glad I'm not long C or BAC-I hate losses much more than I enjoy gains! I'm on the other side of the Paulson trade-maybe he sold me the puts? He must be freaking. He confused luck with skill. All good traders learn to distinguish luck from skill mostly by losing a lot of money so this is his learning opportunity!
And the most important gem of all: "desire is the source of all unhappiness" the Budda
Manipulation???
You ain't seen no manipulation until you've looked at the gold chart. Up lines are all gradual, so are many down slopes but every so often one sees the straight down signature of the dark forces. Often 2 good hits in a row. Now that is efficient manipulation. I have read that the probability of random trading causing such lines is well... quite low...
Hey Graham i see you've updated your FREE reports such that you no longer offer gold at $350/oz!
I guess the leprechauns are on vacation and/or you've wised up!
Good man!
Hey Tyler I have upgraded your poster from Douche to AA+
A great book for economics wonks that shows why and what is happening....and the inevitable consequences we must all face:
"The Return of the Great Depression" by Vox Day. (He tends toward the Austrian school). He is a brilliant intellectual and is well-steeped in economic theory and gives the statistics, history, and data to back up his supposition.
I say by Friday. No one is going into the weekend long in this shit storm of panic.
How about the next few minutes!
And dumbass traders who think that stop orders and options can really protect them from sharp market moves.
http://www.bloomberg.com/news/2011-08-10/bernanke-signals-fed-dissenters...
QE3 on the way
But I wonder if the FED knows QE3 is too obvious and politically untenable, and that is why they are resorting to the interest rate suppression option. More Americans will "buy" this b/c they do not see the inevitable monetary consequences of this, and can actually personally benefit via low rates. IDK....maybe they WILL do 3, but not until all other measures are tried. It seems that QE is the only thing that Wall Street will accept these days.
where have all the greenshoots gone, long time passing...
fuck the fed and its criminal banksters
Damaged and rotten. Good it will do as top soil for next spring.
A cycle model for the DJIA suggests the correction has just begun, looking like the 11-year H&S formation is breaking to the downside.
http://econocasts.blogspot.com/2011/08/model-djia-longshort-cycle.html