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The Illusion Of Strength

Tyler Durden's picture




 

Submitted by Lance Roberts of STA Wealth Management,

 

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Thu, 08/21/2014 - 19:23 | 5127580 nosoeawe
nosoeawe's picture

yellen / QE is the HIV to the finanical markets. once you have it, you'll never get rid of it

 

Thu, 08/21/2014 - 19:27 | 5127604 Glasnost
Glasnost's picture

More like terminal cancer.  Once you no longer have it, you're dead.

Thu, 08/21/2014 - 19:36 | 5127652 philipat
philipat's picture

But like in all Ponzi schemes, there has to be a stream of new money coming in. QE started it rolling and now Retail is all-in. Volumes are pathetic. So the Fed MUST get money out of Bonds into equities, which would result in 401K's and other pensions being put on the line. But, interestingly, it isn't working so far. This gives the Fed 2 choices, both of which could have unforseen consequences. Either, they announce massive new QE OR they force funds out of Bonds by allowing rates to rise. I suspect the former.........

Thu, 08/21/2014 - 20:08 | 5127807 max2205
max2205's picture

I've often thought that if the Fed wanted to run up the market without suspicion of manipulation, they would as I would (LOL) run the fucker up and down within reason and within a varied trend line up.

Just the right volatility in the past 6 years would have recapitalized the TBTF MUCH MOAR quickly trading the unannounced but leaked moves.

Which really shows that the Fed is a bunch of stupid monkeys.

Now they can't back off.....but they probably don't know they can't.

Yo!

Thu, 08/21/2014 - 20:19 | 5127850 El Oregonian
El Oregonian's picture

Strength through illusion = A very Strong Delusion

Thu, 08/21/2014 - 19:29 | 5127616 LetThemEatRand
LetThemEatRand's picture

Good metaphor.  And like HIV, the QE market requires continued injections of large sums of money to keep from turning into something really bad.

Thu, 08/21/2014 - 19:27 | 5127597 zorba THE GREEK
zorba THE GREEK's picture

In other words, run for the hills bitches, before you lose your britches.

Thu, 08/21/2014 - 19:34 | 5127638 Rocket De Stock
Rocket De Stock's picture

All markets eventually revert to the mean, and in this case markets are stretched so far above ( the 200 MA ) that correction "must take place" in order to draw in new buyers / keep the ponzi going another leg / whatever.

 

Complacency is everywhere as by design....this is the plan, once everyone is "totally convinced" markets can't possibly fall....that 's what they do.

Anyone thinking "this time will be different" is the exact same guy that thought so the last time.

This is redundant. It's never different. 

More from Forex Kong: http://forexkong.com/2014/08/06/navigating-the-turn-2-years-without-retu...

Thu, 08/21/2014 - 20:09 | 5127809 max2205
max2205's picture

That would slaughter every player

Thu, 08/21/2014 - 19:38 | 5127659 himaroid
himaroid's picture

This won't ease the pain of the disilluisioned....

http://www.philly.com/philly/health/topics/HealthDay691021_20140821_U_S_....

Thu, 08/21/2014 - 19:43 | 5127694 RopeADope
RopeADope's picture

For a period of time at Auschwitz the SS appeared strong to the Jews in the way this market appears to be strong to most observers. The question you have to ask yourself is whether you wish to be victimized the way the Jews were in WWII.

Thu, 08/21/2014 - 20:09 | 5127811 ebworthen
ebworthen's picture

Winding it up for the big one; nice coiled spring the FED has in their hands.

Thu, 08/21/2014 - 20:58 | 5127996 TeraByte
TeraByte's picture

Fed has painted itself into a corner, a Catch 22 between consequences of monetary tightening and hopeless futility of further easing. The next run of bulls will be great entertainment to watch.

Thu, 08/21/2014 - 21:03 | 5128017 venturen
venturen's picture

A Nail Gun could get them out of a corner. Today could be the first honest day for the rest of their life! Rip that bandaid off...1, 2, 3!

Thu, 08/21/2014 - 21:02 | 5128012 venturen
venturen's picture

DOW MILLION!

Thu, 08/21/2014 - 22:13 | 5128251 seek
seek's picture

You know, he's had that log-periodic bubble chart for January 2014 since before January 2014. It's almost September. Still no crash -- and while I agree it'll happen someday, it might be time to update that chart since it's not so prophetic anymore.

Thu, 08/21/2014 - 23:21 | 5128456 Godisanhftbot
Godisanhftbot's picture

 The bots are frontrunning other bots , thus ,  corrections never go full monty.

 

 And the Great Bull Market will not end until Zero Hedge  gives its permabear stance up, and puts the name up for quick sale.

Fri, 08/22/2014 - 01:06 | 5128665 fibonacci's claus
fibonacci's claus's picture

Why invest in the stock market when you can just go to Trump's Atlantic City Casino and lose all your money?  Oh that's right Trump's casino is going out of business, along with 140 moar Staples. 

It looks to me from looking around locally that the "main street business incubator elite" that started small businesses and rented over priced commercial space 5-6 years ago are now going out of business today.  Along with moar big chain stores. 

Google and Apple will go out of business as soon as the millenials figure it out and dump their cable, phones, and computers. 

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