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7 'Saves' In 7 Months: A Market Going Nowhere Fast
Submitted by Charles Hugh-Smith of OfTwoMinds blog,
Can markets be saved an eighth time, a ninth time, a tenth time this year? How about next year?
What do we make of a stock market that's been "saved" seven times in a mere seven months? Saved from what, you ask? Saved from rolling over, of course; after six years of upside, the current uptrend is getting long in tooth, and evidence of global recession is mounting.
What's "saved" the market seven times in seven months? The usual burps of hot air: the Federal Reserve issued more mewlings (zero rates forever), Greece was "saved" again, China's crumbling stock bubble was "saved" again, and so on.

The problem for bulls is they keep hitting their head on the ceiling after every "save": instead of running to new highs in an extension of the six-year uptrend, the S&P 500 reverses once it reaches the narrow band of recent highs.
As soon as the SPX hits this range, somebody starts selling. It's called distribution: the smart money sells to whomever is buying--bot, trader, hedge fund, it doesn't matter, as long as someone takes the shares off their hands.
This raises the question: how many more "saves" can there be? How many more times can Greece be "saved" so global markets rally? How many more times can China's imploding stock market be "saved," bailing out global markets again? How many more times can the Fed talk up zero interest rates and put off an eventual click up in rates?
Are there an unlimited number of "saves" in the system? Will we wake up one morning in July of 2016 to find the market has been "saved" a 17th time, or a 20th time? can markets bounce once a month on some absurd "save" of a broken system essentially forever?
History isn't especially kind to the faith that the market can be "saved" every month for years on end. China's authorities and stock market punters are learning this the hard way: when the sentiment has turned, every "save" gets sold by the smart money, and then by the "dumb" (i.e. margined) money as their hopes of new highs are shredded once again.
Can markets be saved an eighth time, a ninth time, a tenth time this year? How about next year? Another 12 months, another 12 saves? If the "saves" are going to run out, why wait to be the last sucker holding the bag when the Fed's fetid hot air fails to work its magic?
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My apologies, I have been saving the market every time. I just don't want it to drop. I don't want people to lose their 401k money. Sorry.
...because you're fixin' to take their 401k money?
Snatching that 401k money is going to win a future socialist some serious brownie points with the mob.
All that 401K money can be invested in special obligations issued by the combined Disability/SS Trust fund!
Jesus SAVES, (but Gretzky gets the rebound & SCORES)!
Saves are a great idea. The more the market is saved, the greater the imbalances become. Then, when there is a crash, it ends up being bigger than it would have been without the saves. Therefore, IMHO I postulate the saves are specifically designed to increase the size of the crash. Bigger crash equals bigger 'understanding' for the sheeple, which achieves the goal of reducation for those who believe they are divinely entitled.
So pretty, it looks like a Hanuka candle holder.
Shitima is a Coming!!
To a theatre near you this fall..
And all bitches die in the very soon end.!
7 saves in 7 months, and 7 years since the last crash, which happened 7 years after the one before.
Sell that house and go to cash kids; this Fall is setting up as the banksters "rake the folks chips off the green felt" 7 year moment.
Funny, you have 7 upvotes. Perhaps the Banksters are into numerology.
Miffed
Can the market be saved an 8th time? Is the Pope Catholic?
Hmmmmm...that one just might not work, anymore.
My apologies, I have been saving the market every time. I just don't want it to drop. I don't want people to lose their 401k money. Sorry.
stop spam fucker
I thought HFs were the "smart money."
Boy am I ever confused. Is it Soros then?
Who, Charles, I must know who!!
I am going to say; Bullard with a computer @ 33 Liberty St.
Did I win?
Writing OTM SPX calls as a way to fund the Fed's fat-ass pension bene?
We're not a hedge fund, we're an insurance (premium collection) company masquerading as a central bank.
Now you know why SPX vols have been getting smoked since H2 2010.
The problem for bulls is they keep hitting their head on the ceiling after every "save"
It's not the bulls. They left in 2012. It's just that fucking satanic cunt yellen and her followers (GS, JPM, other CBs, etc)
There is that number 7.... again. My bets are still on by September for the major correction. But what the heck do I know.
Ya, you and 10 million other people are looking for a major correction in the fall, which all but guarantees that it won't happen.
Unless of course it does.
The market is behaving wierd because of Russia and China.
Any weakness shown by the west helps the east.
The problem is that the west is really weak.
This is what makes war inevitable.
Pray those who betrayed the west die spitting blood.
"Permanent high plateau" comes to my mind...
Actually the leveraged decay built into all the commodities and sector exchanges through ETN/ETF instruments accelerate faster when this type of 'action' happens in a sector/commoditiy arena. Each time it pops and drops the rope gets tighter and tighter and tighter. Forces the leveraged ETN/ETF instrumentation managers to split and reverse split their 'balanced' offerings. The more money that moves in large and small sectors the faster the decay.
It is that massive block of capital that's holding down the market like a boat anchor, to jump that shark they will need to print x4 the amount of capital they have right now. In turn this helps accelerate the situation further. The more leveraged ETF/ETN's out there covering smaller and smaller niches the greater the exposure to leveraged decay operating contra to the market it is supposed to 'save'.
In respect to the the current situation with ETF/ETN's, if using the boat analogy:
1) The boat anchor gets bigger (split),
2) The rope gets shorter (reverse spilt)
3) The boats multiply and gets smaller each offering on the market (expansion of niche ETF/ETN offerings into over saturated leveraged ETF/ETN that also handle macro segments).
It is all built to self destruct and render everything valueless.
digging and rigging
Stops apenty above though so odds favour a runthrough at some stage. A trailing stop for longs on reduced size would be a good idea to take advantage.
Water is just fine here :)
http://www.marketwatch.com/investing/stock/svu
Drink up!
Gartman went short this week after saying last week you'd be a fool to short after saying he was short a week or two before.
no i think he's long again after this 50 handle SPX rally.... brilliant!
"Are there an unlimited number of "saves" in the system"?
Well I can tell you this...we are going to find out!
"They" will not stop, so who or what will stop them?
Historically, war.
But, nuclear war?
Yes.
The lead up has been prolonged because the elites will get dirty, but it will still end with war.
Only the dead have seen the end of war.
-Plato
.
Some times I think they've taken this so far, these psychopaths want to turn everything into a Dan Brown Novel.
Just so they have something do for a few years after they destroy everything.
Some times I think they've taken this so far, these psychopaths want to turn everything into a Dan Brown Novel.
Just so they have something do for a few years after they destroy everything.
Fully and thoroughly acknowledging the criminal Cabal Tribe scumbag Fed and its propensity to constantly bail out the PDs . . . . . . I'm left thinking that my conjecture earlier in the year about a major change is playing out. Going back to early 2015 we had like a zillion CB moves of some sort while the Fed has both failed to act explicitly and even changed the tune and frequency of its jawboning. It may be that for now at least the baton in fact has been passed to Mario for the free coke and strippers and away from Janet and Abe. I'm not declaring this is law just being open to it. I'm not saying we don't see QE4 but perhaps it does come only AFTER a major equity crash.
Regarding this author's "Seven Saves" yeah I hear ya - but this time we have some very big moves elsewhere thus adding more juice to the premise that equities may literally be skating on extremely thin ice. Copper and crude have been absolutely destroyed and the PMs have stayed in their downtrend and broken to new cycle lows. USD took off like a rocket last summah and in my view DXY could very well head towards 120ish. Why I ask? Dummy stocks pumped by Wapner and Cramer are always last to get the memo but also bear in mind the logisitics of distributing all of those piece of dogshit shares - not like you can just place a couple of million share sell orders and call it a day. The reason why may be that despite all of the manipulation major players could be correctly frontrunning a very serious global margin call. First EURUSD goes along with risk assets and THEN maybe USD takes a dump after this flushing. Just a thought.
Am I short equities here? Nope. Not yet. Full retard blow off to 2150ish quite possible for me and I would rather short after a major dive that rallies back to resistance on weak volume.
Next time, Keyness (and maybe Yellen) moustache will be shaved.
SPX is running into serious overhead resistance at 2138 from something called a Butterfly Pattern. It's the 1.618 extension of the drop from 1576 to 666 between 2007 and 2009. If that's Greek to you, there's an explanation at: http://pebblewriter.com/the-last-big-butterfly/
SPX could easily have bagged 2138 in February, but didn't have the yen carry trade support at the time. USDJPY had just reached the .618 Fib retracement of its crash into 2011, and didn't have any gas left in the tank. Specifically, it had to wait for moving average support from the SMA200, which is just now arriving on the scene. http://pebblewriter.com/the-yen-carry-trade-explained/
The timing of all this is a spot on repeat from past years -- an analog we've been writing about since this past March. http://pebblewriter.com/learn/analogs/
According to the analog, SPX should officially test SPX 2138 around August 13 and finally break out in mid-October -- most likely as the result of the BoJ expanding QQE yet again. There are some important caveats, but it's been fairly accurate since we first posted in March. http://pebblewriter.com/a-new-analog-mar-27-2015/
There are plenty of skeptics who equate Harmonics with voodoo witchcraft, but it's been a very solid indicator of where big reversals can occur in years past. Of course, over the past several years, harmonics have been a great indicator of where TPTB will step in and manipulate the "markets" even more forcefully than usual. http://pebblewriter.com/turning-points/
Just wanted to pop in here and thank a few of the above comments for their insight and thoughtful responses. That's what ZH should be about. Believe in the validity of TA or not, just remember that way too many of the big time traders (algos included) swear by TA and worship at its altar. Therein lie market moves.