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Stocks Bubble Right As the Economy Rolls Over… Next Up the Bloodbath
The Fed’s FOMC meeting over. The Fed has removed the word “patient” from its verbiage concerning future rate hikes, so traders will have to find some other minutia to obsess over.
Speaking of traders, Wall Street has tried desperately to gun the markets. Stocks have been in rising wedge pattern since November. Thus far Wall Street has failed to generate the desired breakout. And they are running out of time.
The old adage “sell in May and go away” has a kernel of truth to it. Historically, the period from May to November has been a very weak one for stocks. All traders and trading models know this. If they cannot mount a breakout to the upside for stocks in the next two weeks, intense selling pressure will commence.
One positive for the bulls is that both the S&P 500 and the NASDAQ managed to eek out new all time highs last week. Unfortunately, the last time this happened was 1999, right at the peak of the Tech Bubble. We all remember what came after that.
As far as the economy goes, Fed’s own GDPNOW model shows the US economy growing a measly 0.1% in the first quarter of 2015. There will be loads of excuses ranging from the weather to who knows what, but the reality is that the Fed has failed miserably to generate any sustainable economic growth.
So… we have stocks bubbling right as they enter a seasonably weak period as the economy is rolling over. None of these things bodes well for the market. We believe stocks are actually putting in a TOP right now, to be followed by a 20%+ correction in the coming weeks.
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QUOTE: "There will be loads of excuses ranging from the weather to who knows what, but the reality is that the Fed has failed miserably to generate any sustainable economic growth."
------------------------------------THAT IS NOT THE FED'S MANDATE-----------------------------
Their mandate is to destroy the American Middle-class at the profit of the .001%; they are doing their job quite nicely. However, they have a way to go and in short time (2-3 years tops) and so the "GREATEST GRAND THEFT" is yet to come and that will be the theft of pensions, 401k's, 403b's and IRA's and anything else they can get their hands on!! No charge$!
Money doesn't exist until it's borrowed. It's a Ponzi debt pyramid scam. The most the Fed can do is manage the collapse. There is nothing anyone can do to save the system. It's reset time. The only reason anyone has any money to invest in a 401k/IRA is because it's stolen money from the rest of the world via the FRN as the reserve currency. The fake American middle class is returning to its rightful place in the peasantry. Be thankful you had a eight decades to live high on the hog.
I wish I had a dollar for everytime ZH'rs do a dance in the endzone after the Dow drops a point.
So… we have stocks bubbling right as they enter a seasonably weak period as the economy is rolling over. None of these things bodes well for the market. We believe stocks are actually putting in a TOP right now, to be followed by a 20%+ correction in the coming weeks."
One can only hope...
I doubt, however, the fall will be as short as about 3600 points. Once the trap door opens, it's going to be a long fall. After all, what causes it to fall at all will still be there on the way down: a broken middle class, deeply in debt and worried, without the requisite income to grow a consumption-based economy.
It's this reality that hasn't sunk in yet.
It'll take an avalanche to get that point across.
m
Time to think about real death; it is going to happen with 100% certainty; who will choose to die in vain? We must be reconciled to Christ or we will die and be judged according to our deeds, which fall short of the righteous standards set by the potter (Creator) and given to the clay (us).
Billions of humans have existed without the notion of jesus christ. You think this religious regime is the absolute truth from within the infinitesimally small timeframe which you occupy. For those billions though who just so happened to be born in the wrong era or wrong country, what was gods plan for them. It's all bullshit. What of the people who simply never had a chance to be reconciled with jesus because they existed 10,000 years ago.
Fascinating that people know stocks, bonds, RE, etc. are manipulated by hook and by crook and yet knowing this you still expect that a real "market" is suddenly going to show up and result in an equity collapse or bond vigilantes taking over???
Things are so bad stocks have got to go up...bond yields down...RE prices up...that is simply in the interests of "national security"...no laws can be broken because anything done in the interests of national security are both secret and allowed.
Compare valuations...
http://econimica.blogspot.com/2015/02/fundamentally-flawed-chapter-34-us-real.html
with liabilities...
http://econimica.blogspot.com/2015/02/fundamentally-flawed-chapter-31-why.html
resulting in this...
http://econimica.blogspot.com/2015/04/so-simple-even-economist-or-fed-can-get.html
These asset valuations will not be allowed to find true supply and demand...I'm not saying there won't be a day of reckoning...just saying it won't likely look anything like '08-'09!
The issue of settling trade account balances is coming to a head. Interesting times.
We already have the Bloodbaths. Yemen, Syria, Ukraine, soon Tibet.
Next up: end of the ex/im Bank.
Yes, this range is quite long in the tooth and I thought it would've broke out already. Maybe it won't, who knows. 2 more weeks of this shit and it will def be ready to do something, what who knows. I do feel it is awful short on oxygen up here but friday fuckfest can always change that.
Watching all this crap is like watching a person who needs a heart transplant slowly grind to a halt . turn blue . and stop breathing . you know its coming . but just not the day or hour.
The 'market' is the enlarged heart .. yes its big .. and getting bigger . and that is a bad thing .. eventually killing the entire system ... enjoy while you can . there is money to be made before it .. the system .. just stops working.
Like Dick Cheney's heart? Supposedly it was the size of a football.
Thank god stocks have absolutely nothing to do with the economy, so buy, buy, buy, because nothing could possibly go wrong.......