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David Rosenberg On Market Capitulation And How This Short Covering Squeeze Will Play Out

Tyler Durden's picture




 

In light of continuing deterioration in macroeconomic data (we don't remember when the last time was that we had a materially better "than expected" data point) many are left wondering how it is possible, that when seeing broad signs of capitulation even among the permabullish contingent, the market has resumed its ceaseless levitation. Simple - as David Rosenberg recaps our post from two days ago, "Short interest on the NYSE and Nasdaq surged nearly 4% in the second half of August; these positions are now being squeezed, which is the "buying" support" the market has been experiencing in the low-volume rally of the past few sessions." Indeed, as long as the weakest hands who piled on the shorts into the latest market plunge are not cleared out, the current episode of no-volume levitation will continue. Sprinkle one or two favorable headlines which sends the robots into a frenzied bullish bias churn, and one can see why it may be time to whip out Birinyi's ruler.

From Rosie:

MORE SIGNS OF CAPITULATION?

  • The USA Today consensus showed that strategists have cut their year-end S&P 500 targets by 8%.
  • Wall Street economists are at 40% recession odds, which means if the heads of research allowed them to really say what the probability was it would be 80%.
  • Bank of America let its chief equity strategist go who was calling for 1,450
  • on the S&P 500 and the most bullish seer out there (we wish him well).
  • The AAII investor sentiment survey shows 30.2% bulls and 40.3% bears.
  • The Investors Intelligence survey also did a switcheroo, with the bull camp in the past week down 3.2 percentage points to 35.5% and the bear share rising the same amount to 40.9%. That is the largest number of bears since March 2009 (was 21.5% at the July market peak). And we have the fewest bulls since the August 2010 retest of the lows back then. The "spread" is now -5.4% between the bulls and bears, well off the +28% gap at the July market peak.
  • Short interest on the NYSE and Nasdaq surged nearly 4% in the second half of August; these positions are now being squeezed, which is the "buying" support" the market has been experiencing in the low-volume rally of the past few sessions.

Remember, it is not at all unusual to see the stock market enjoy a relief rally after the initial 20% leg down in a cyclical bear market. For example:

  • The S&P 500 peaked on September 1, 2000 at 1,520. By April 4 of 2001 — the economy at this point is more than a month into recession — it hit an interim low of 1,103. Then even with a very poor economy, the news became less bad, the shorts covered, and the S&P 500 zoomed ahead to 1,312 by May 21st. That was a 19% surge despite the economy moving deeper into recession.
  • How can that be? Well, that's how the market works — backing and filling. But the right strategy was to continue to adopt a recession view until the data told you to abandon that view and to sell into that strength. By September 7th, two days before the 9-11 terrorist attacks, the S&P 500 had broken to new cycle lows of 1,085 (and didn't hit the ultimate low of 776 until October 9, 2002).
  • It was the same deal in the last cycle. The S&P 500 peaked at 1,565 on October 9, 2007 and then endured a big initial leg down to 1,273 by March 10th — when Bear Stearns went bust. Then, after a series of Fed rate cuts and a huge tax rebate from Washington, that's all it took to scare the shorts and took the S&P 500 all the way up to 1,426 by May 19th for a nice 12% bear market rally. By the end of July we were back below 1,250 and that was before Fannie and Freddie had to be taken over explicitly by the government ... and we know what happened after that. Indeed there were plenty more peaks and valleys before the trough was finally turned in (in March 2009).
  • We had this similar pattern in the early 80's as well — the S&P 500 went from 140.4 on November 20th, 1980 to 112.8 as of September 25th, 1981 — that first 20% leg down — to only then get a relief technical rally from oversold levels to 126.3 by December 4th, 1981. That got a whole lot of traders excited but the long-only crowd got decimated unless they got out at these better price levels because the S&P 500 ultimately went all the way down in the last down leg to 102 by August 1982.
  • Moreover, back in the mid-70s bear market, much of the same. The S&P 500 slid from January 11th, 1973 from 120.2 to 100.5 as of August 22nd, 1973 so we had that first 16% drop. That was followed by a nice rally back to 111.4 by October 26th, 1973. The trough, however, was 65 at the lows in December 1974.
  • In all cases, that first rally following the initial leg down reversed half of the initial selloff. That is exactly what is happening right now. Tread cautiously if you are tempted to jump in. In other words, even with the bounce off the early August lows, this cyclical bear market is following a very similar path.

Source: Gluskin Sheff

 

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Thu, 09/15/2011 - 13:08 | 1673850 redpill
redpill's picture

I think I'll just pull a Adoboli and massively short something entirely at random.

Thu, 09/15/2011 - 13:11 | 1673866 Godisanhftbot
Godisanhftbot's picture

 you have a better chance shorting at random, if you short based on rationality, they will target you for sure.

Thu, 09/15/2011 - 13:32 | 1673972 Smiddywesson
Smiddywesson's picture

Absolutely!  Anything, even a Holy Grail system, that puts you on the side of the trade where retail is clustered, is bound to lose in the long run.  The only thing that works in "markets" that are not markets, but are in reality manipulated abominations, is understanding the scam and avoiding the targets of that scam.

If anyone tries to sell you anthing that doesn't factor this reality into the system, run away.

Thu, 09/15/2011 - 14:40 | 1674203 IQ 145
IQ 145's picture

For the tenth time now; you don't short rallies in markets coming off bottoms. And you don't short anything because of gloomy conversation on an inernet blog; S&P 500 breaking above 1200 as predicted here yesterday. Do not Short anything. This is a rally. Oh, and by the way, the author doesn't know shit.

Thu, 09/15/2011 - 14:51 | 1674225 MarkS
MarkS's picture

Sure, of course you know it's a bottom how?  Is it a bottom like the bottoms in Feb, June, and Oct '08?

So far is is a rangebound trade between 1100-1225 maybe after we get a few closes outside the range we'll know for sure.

The author does know shit.  He knows economics, which doesn't make him a good trader or even a good investor necessarily.

 

So, is your IQ really 145?  I feel so sorry for you, mines so much higher...

Thu, 09/15/2011 - 15:00 | 1674243 HD
HD's picture

Who said it was the bottom?

Thu, 09/15/2011 - 15:37 | 1674367 Tater Salad
Tater Salad's picture

IQ, you forgot these around your number (***)

 

There, looks better doesn't it.

Thu, 09/15/2011 - 16:23 | 1674578 MiguelitoRaton
MiguelitoRaton's picture

IQ 145? I'm assuming that is the cumulative number for you, your wife and 4 kids.

Thu, 09/15/2011 - 17:16 | 1674801 Savyindallas
Savyindallas's picture

And we're supposed to trust you because you claim to have an IQ of 145? Tell me smart guy - S@P at 1208- at what point do YOU short?

Thu, 09/15/2011 - 13:12 | 1673869 SilverRhino
SilverRhino's picture

The scary thing is that he supposedly had monetary access capable of even generating a 2B dollar loss.

 

Thu, 09/15/2011 - 13:39 | 1674005 TzaristBondHolder
TzaristBondHolder's picture

someone was BUYING at random -  BNP is up .....

Thu, 09/15/2011 - 13:08 | 1673852 Corn1945
Corn1945's picture

I think it's wise to stay out of this casino altogether.

Thu, 09/15/2011 - 13:23 | 1673920 mac768
mac768's picture

... now we just happen to be at the level of bears close to the 2009 low

what happens next?

... the casino is open for the risk-takers..

Thu, 09/15/2011 - 13:31 | 1673960 Corn1945
Corn1945's picture

I don't understand why the market moves up or down anymore. I'm just guessing and am quite sure everyone else is also. The market no longer has a connection to the real economic fundamentals which makes "investing" akin to coin flipping. There is far too much manipulation and intervention to use it as a price discovery mechanism.

Money is too hard to come by to risk it in a casino-like environment. I would only buy stocks at a level near the March 2009 lows. Dividend yields are way too low to risk capital to chase yield. The risk-reward calculation doesn't come out in my favor.

 

Edit: Here is a headline I just saw "Bulls Brush Off Weak U.S. Data"

Uh, okay. Why are you buying shares in a company if you are just going to ignore the data? The entire thing makes absolutely no sense.

Thu, 09/15/2011 - 15:27 | 1674240 slewie the pi-rat
slewie the pi-rat's picture

hey, c_45!

Money is too hard to come by to risk it in a casino-like environment. 

yezZeree: esp in a recession/correction/depression! 

i agree and "traders" who keep large sums in the casinos may be facing cerain "counterparty risks" if/when the global goobermints' credit bubble makes a certain tell-tale sound.  we have seen the co-ordination of the int'l bankster cabal, there past 2 days simply b/c da playaz had to reveal their "colluding" in order to stabiliZe the EU and keep china's political leadership credible and also involved

i wonder what r.paul will say to the benzelbub @ their next "hearing"? 

i think we have QEIII, here, don't we? but as "smaller" US-side banks do the "swaps of $$$ for fecal matter" and american juice is transferred, openly and wholesale, to the NWO europeon masters and their puppets.  this is inflationary as heck, too, boy!  unless, of course, the expanding whirlpool of deflationary collapse just disappears our wealth via the pigpeople and their adorable piglet puppet nations which need "austerity" like a fuking hole in the head, but the idea that goobermints can balance budgets and just cut the pork & fat and govern apparently belongs to a future paradigm shift, b/c the idea has little traction, even on this site, where bloggers are actually quite heavily conditioned, politically, in diff ways, and ready to do actual violence to anybody who scratches their surface a bit and shows them for the robotic, untinking foolz they be

the economic "glitch" between austerity being the only legal remedy and being not the right 'economic' remedy for the keynesians is now being "addressed" but as nancy pelosi will sure appreciate, time is of the essence, so let's just cut the discussion and git 'er done for the puppet-masters, here, dammit!

the bullion banksters stand ready to buy all the PMs and paper PMs you wanna unload, here, of course, even tho they may be much more interested in "painting" our two majestic phyZical horses as "breaking" down outa certain channels and trends, here, technically.  that is what they do, and we are looking at how they do it in real time.  this is, perhaps, why most "technical calls" esp re the miners have fared so poorly over the last few years

again, i'm with you, not so much due to the nature of the casino (compulsive gambling from home in a socially-acceptable way for the OCD types who will, eventually, lose everything, as always) as due to the zombie/insolvent status of many of the "trusted" brokerages and/or their retail/commercial/bullion/venture&LBO banking and insurance branches.  please read your prospectus if you are a "trader" ok?

as we progress thru this insanity, cashing out or buying/owning PMs may become more & more "regulated"  so each person should think and act individually and prudently, depending on understanding and intuition

"protection" is paramount for slewie, too.  i gamble, but in casinos and online poker clubs and it's all cash, and a ton of fun w/ some great people

"price discovery" will only happen when the bubble du jour ('sovereign" debt) makes that tell-tale sound, which may have been temporarily averted in the EU long enuf for the "legislating" and political "majorities" to get the bonds and their reception (by china) up to speed, even as the cabal has gone public w/ their collusion and manipulation of everything monetary and "economic" (think hundreds, at least, of centrally co-ordinated PPTs for a fun few minutes!)...

...so that "investors" will have more confidence, no less!  which is really, terribly funny, isn't it?

Thu, 09/15/2011 - 15:33 | 1674352 Panafrican Funk...
Panafrican Funktron Robot's picture

Actually, it does.  Once you accept that the stock market and broader macroeconomic data are uncorrelated, you can ignore that noise and focus on how it actually moves, and profit accordingly. 

Thu, 09/15/2011 - 13:41 | 1674015 TzaristBondHolder
TzaristBondHolder's picture

not casino, a theatre.  In a casino you gamble knowing the house rules, here they change games and rules WHILE you are trying to place bets

Thu, 09/15/2011 - 13:10 | 1673860 anynonmous
anynonmous's picture

Rosie, which is it?  the seventies  or the thirites

Thu, 09/15/2011 - 13:11 | 1673864 kito
kito's picture

sign outside of fort knox now reads "we sell gold"

Thu, 09/15/2011 - 13:22 | 1673923 InconvenientCou...
InconvenientCounterParty's picture

that makes sense.

Why else would gold tank on the announcement of more debt creation and announcement of currency intervention?

It should be no surprise that gold is the "go to" asset when fiat fails. Selling and buying sounds like a real market.

Thu, 09/15/2011 - 13:29 | 1673952 moonstears
moonstears's picture

Saw it, too...but said "we BUY gold" (for the FED's stash, guarded by the US Army, thanks to FDR!), as I recall.

Thu, 09/15/2011 - 13:33 | 1673979 kito
kito's picture

no moonstears, you dont have this massive drop in gold when such bullish gold news comes out unless the fed and other cohorts are dumping into the market to prevent a run to the ultimate safe haven. they are dumping gold, pumping fiat into this news to keep fiat in the banking system.... 

Thu, 09/15/2011 - 13:43 | 1674025 Shell Game
Shell Game's picture

'they are selling gold'  Which? There are two gold markets, one they sell and one they vault. 

Thu, 09/15/2011 - 13:55 | 1674073 moonstears
moonstears's picture

Kito, my idea was to shed light on a possible theory, I've read, concerning WHO owns the gold in Knox. I believe that the hedges, individuals, etc are selling, FED/ CBs not so much. JMOs.

Thu, 09/15/2011 - 17:23 | 1674846 Toma Haja
Toma Haja's picture

My suggestion is that the drop in gold is the result of the inverse of Rosie's article on the short squeeze.  The institutional holders of gold are shorting it in order to buy it on the cheap. 

Thu, 09/15/2011 - 13:55 | 1674070 tiger7905
tiger7905's picture

Dylan Grice talking $10,000/oz gold, the idea of very high gold prices going mainstream...

http://goldandsilverlinings.com/?p=1628

Thu, 09/15/2011 - 13:59 | 1674084 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

In very small print below main verbiage:  "if we had any":)

Thu, 09/15/2011 - 13:13 | 1673873 macfly
macfly's picture

I'm holding steady short, but wish I'd got in at these levels!

Thu, 09/15/2011 - 13:15 | 1673874 DirtMerchant
DirtMerchant's picture

The house ALWAYS wins...better to spend your money elsewhere, more enjoyment, less frustration...

BE the house, stay physical my friends!

Thu, 09/15/2011 - 13:37 | 1673999 Smiddywesson
Smiddywesson's picture

Excellent point. 

Physical will be the eventual winner. 

Physical has no counter party risk. 

You can't trade physical because it's, well, so physical.  Therefore, it's hard to scam you out of your position. 

Physical has no calories and keeps you in shape with all that digging.  After all, the #1 rule with respect to a zombie apocalypse is "cardio."

Thu, 09/15/2011 - 14:12 | 1674118 Bendromeda Strain
Bendromeda Strain's picture

Meh - bad joints, can't run. Which means Rule #2 is all important...  DOUBLE TAP!

  

Thu, 09/15/2011 - 13:13 | 1673875 xtop23
xtop23's picture

Its all well and good to look at past precedent but the game is different this time. You follow the rules learned from previous trends at your peril.

Thu, 09/15/2011 - 15:01 | 1674246 RockyRacoon
RockyRacoon's picture

I was just thinking the same thing.   All references to "past performance" are irrelevant.   The 1980s is certainly no clue to today's actions in the markets.   Maybe go back to the 1930s for some more relevant parallels.

Thu, 09/15/2011 - 13:14 | 1673877 HedgeFun
HedgeFun's picture

Love Rosie.  Clear thinking.

Thu, 09/15/2011 - 13:15 | 1673882 Belarus
Belarus's picture

Last September the market rallied 8%. So far, the market is still trying to recover losses for Sept. By the end of the montth, September will likely be another fantastic month. 

Remember, the market alwasy does what it supposed to do, just NEVER when it supposed to do it. If the NYSE short interest didn't scare the shit out of you, I don't know what would.

The market will indeed crash....but first it must fuck every soul alive. 

Thu, 09/15/2011 - 13:16 | 1673888 DirtMerchant
DirtMerchant's picture

if the market crashes and nobody is in it,  does it make a sound?

Thu, 09/15/2011 - 13:19 | 1673898 xtop23
xtop23's picture

 The sound of HFT computers having an orgy should make for quite the auditory assault

Thu, 09/15/2011 - 13:39 | 1674007 Smiddywesson
Smiddywesson's picture

The markets are designed to hurt the most people most of the time.

Bernard Baruch

Thu, 09/15/2011 - 13:56 | 1674076 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Good posts Belarus.  Words of wisdom.  Sometimes "stand aside" is the wise option!

Thu, 09/15/2011 - 14:24 | 1674156 Zola
Zola's picture

Short interest does not mean anything bullish, it is quite the opposite in a real market actually, high short interest means smart money is anticipating a decline and it is a bearish signal. Only in this casino where Shorts are specifically targeted by the ones who see the positions does that have the opposite effect. Finally you should check the short as a % of issues , when you have whales like Biggs who will puke massive amounts , a low short interest does not mean anything. The market has become deeply corrupted and gold is at this point the only answer.

Thu, 09/15/2011 - 16:04 | 1674507 Hugh_Jorgan
Hugh_Jorgan's picture

Don't forget that there are two Gold markets, and the price is based on the Ponzi paper market.

I LIKE to think that that this price drop is a combination of profit taking (after another significant upshot wasn't realized in the past week) and the shrewdest investors unloading paper gold in a coordinated effort. This motive is to drive the price way down in an effort to allow them to buy back into physical, but we'll never know.

Whatever happens, this move is very temporary. Price will resume it's rise before long.

Thu, 09/15/2011 - 13:16 | 1673886 buzzsaw99
buzzsaw99's picture

What a crock of shit. Time to go long.

Thu, 09/15/2011 - 13:19 | 1673901 Belarus
Belarus's picture

Don't, you simply don't know when the market is going to fuck you. When you don't know what cards are in the deck, you're a sucker to play. Don't play--it will treat you no different than Vegas, the longer you play the more you'll lose.

I'm barbelled right now: USD (I know, I know) and precious metals. Almost none in any bank or brokerage. 

Thu, 09/15/2011 - 13:25 | 1673936 Belarus
Belarus's picture

BTW, I'm following the late Benjamin Graham's advice on asset allocation. I'm 50-50 between cash and precious metals. Every time cash goes up to 55% because of precious metals tanking, I re-allocate back to 50-50. However, I never re-allocate from PM back to cash.....

Therefore, I'm 80% in PM's and only 20% in cash. ROFLMAO. Meanwhile, I'll wear the Dow 11,300 2000 hats for all the sheep. Oh.....wait, it's 2011!

Thu, 09/15/2011 - 14:32 | 1674179 IQ 145
IQ 145's picture

I guess this is a good place to remind you that I've told you over and over again that the huge short interest means the market is going up; and that I posted here yesterday, that I bought the S&P500 at 1182.7; so that's $5000 overnight and up ticking; also I posted why I did it and asked you to look at the S&P500 chart; attempting to teach. It's not my fault if no one listens.

Thu, 09/15/2011 - 15:27 | 1674333 buzzsaw99
buzzsaw99's picture

TSX + 1%

GS.TO - 1%

 

enough said

Thu, 09/15/2011 - 18:22 | 1675147 Astute Investor
Astute Investor's picture

so that's $5000 overnight and up ticking

What will you do with all of that money?  I guess a financially stress-free retirement is all but assured.

Thu, 09/15/2011 - 13:17 | 1673890 The Deleuzian
The Deleuzian's picture

I'm not sure contemporary comparisons shine much light on the current situation....More like the Roman Empire in fast forward a factor or three

Thu, 09/15/2011 - 13:17 | 1673892 monopoly
monopoly's picture

This post makes a lot of sense to me and we are on the same track.

Thu, 09/15/2011 - 13:18 | 1673897 lunaticfringe
lunaticfringe's picture

I don't need all of those bullet points. For me, it is far simpler. I think the member banks are positioning for QE3. I think they know it's coming, and I think this market is completely detached from reality and sick. I couldn't trade this thing with tyler's genius. http://thecivillibertarian.blogspot.com/2011/09/what-hell-is-going-on-wi...

Thu, 09/15/2011 - 13:19 | 1673903 DrFever
DrFever's picture

Why do you continue to post Rosenberg's commentary?  The guy has been wrong for 3 years.  lol ... I guess any content is content

Thu, 09/15/2011 - 13:20 | 1673905 CrashisOptimistic
CrashisOptimistic's picture

The world cannot function with oil north of $110.

Everything else is gobbledygook.

Thu, 09/15/2011 - 21:10 | 1675751 ItsEvolutionBaby
ItsEvolutionBaby's picture

Gobbledygook: Oral sex with an Asian.

Thu, 09/15/2011 - 13:22 | 1673924 monopoly
monopoly's picture

Woke up this morning, went to my home office, checked  news, markets and my accounts and low and behold there was a $5,250 fraudulent purchase on our credit card. Ahh, the third year of the recovery. Of course since I am not with BAC C or any other insolvent broken bank it was taken care of in 15 minutes and new account and new cards being Fed Ex. to us with apologies from our bank.

Can you imagine the horror story if we banked with BAC and that happened. I shudder at the thought.

Thu, 09/15/2011 - 13:30 | 1673956 InconvenientCou...
InconvenientCounterParty's picture

I'm no fan of BAC but they handle CC fraud just fine. It happened to "a friend" a couple of days ago.

Evil consumer protection regulations tend to force the banks to protect their asses. Enjoy that while it lasts, because the GOP/Tea Party job creation plan is riding to the rescue.

Thu, 09/15/2011 - 14:35 | 1674194 IQ 145
IQ 145's picture

Also making money on BAC; bought at 6.98/ there's a lot more to come; why? If it can't go down, it'll have to go up. (chart evidence). TBTF means exactly what it says; for the ninth time, now. The only thing that could get BAC stock below $7 again is failure; but it won't be allowed to fail; in fact it will post "profits".  Feel free to participate it's a public market.

Thu, 09/15/2011 - 13:25 | 1673932 Mediocritas
Mediocritas's picture

Didn't you get the memo? HFT is only banned if it's front-running sellers.

The beatings melt-ups will continue until morale improves.

Thu, 09/15/2011 - 13:25 | 1673937 Cirederf
Cirederf's picture

50% retracement would put the S&P at 1235, let's see if the market gets to that point in the following days, then enjoy the way down!

Thu, 09/15/2011 - 13:26 | 1673944 Belarus
Belarus's picture

it'll be there by the end of the 22nd. 

Thu, 09/15/2011 - 13:27 | 1673940 adr
adr's picture

No no no, see the market has already priced in the total global systemic collapse and is now pricing in the global recovery after the great reset. At that time the GDOW (Global Dow) will be 1 million points. Since the market is forward looking there is no point in trading down because it will just go back up. Without shorts you really can't make any money as the market goes down so permaincrease is what we get. Asset values don't matter because you can always print more money to make assets more valuable. It does mean everything gets more expensive but that is why you just print more money.

In fact we may have already missed the Dow dropping to 1000 points which signaled the great collapse. It only lasted 1 millionth of a second but it did happen and the computers already traded it back up. We just can't see it because it happened to fast to actually be recorded. But just because you didn't see something doesn't mean that it didn't happen. You know tree falls in the woods stuff.

Happy days are here again, nobody needs to work a job because everything will be provided. Don't ask where it will come from, the government silly.

Thu, 09/15/2011 - 13:28 | 1673950 Smiddywesson
Smiddywesson's picture

Don't be ridiculous, this is a new paradigm, this time is different,  everybody into the pool.

Thu, 09/15/2011 - 13:30 | 1673959 There is No Spoon
There is No Spoon's picture

selling stocks here and going into cash, the hated u.s.d.

Thu, 09/15/2011 - 15:04 | 1673962 slewie the pi-rat
slewie the pi-rat's picture

not sure about why he uses "cyclical" bear

OT???

in a world of bankster-ca-balling "secrets", black ops interlocking intel directorates, funny money honey, PM manipulation down, paper manipulation up, and senseless wars, violence, and torture, this piece helps explain how the brave NWO has "the right person(s) at the right place at the right time", even when someone like DSK hasta be taken down to "git 'er done"

here, allison weir covers ambassador daniel shapiro's recent speech to the Jewish People Policy Institute (JPPI) and i suggest you read it if you want to understand the degree to which zionism is US Policy #1 in the ME (and at home, of course), and maybe begin to consider how & why the "muslim brotherhood" of revolutionaries is "backed" by  TPTB {The Israeli Litmus Test » Counterpunch: Tells the Facts, Names the Names}

some pastes, if you're busy:
~~~“The test of every policy the Administration develops in the Middle East is whether it is consistent with the goal of ensuring Israel’s future as a secure, Jewish, democratic state. That is a commitment that runs as a common thread through our entire government.”

~~~He said that “a stronger commitment to Zionist education for American Jewish youth could do much to strengthen bonds that we want to be even stronger in the next generation, but may not be if left untended.”

~~~“I am a proud member of our Jewish community in Washington, DC, active in a Conservative synagogue and the Jewish day school that my children attend and where my wife, Julie, worked for many years. And my profound respect for the State of Israel and its remarkable achievements stems from a lifetime of exposure to the extraordinary people who brought Theodore Herzl’s Zionist dream to life.”

~~~The ample bookshelves in my parents’ home grew laden with studies in Zionism, Jewish history, and Israeli literature.

the emphases are mine.  i saw some "that's not acceptable, that's racism" comments here the other day when people spoke out against "jews" and hopefully we all can begin to differentiate between people and extreme political views of the powerful and their puppets, and also the difference between jewish people and the khazar people, both "racially" and also vis-a-vis their historical "strategies" and struggles

if you're not familiar w/ these ideas, you have a computer and can look for yourself, ok? 

it is very difficult to stand against zionism w/out sounding "anti-semitic" yet in the interests of our children's liberty, it must be done and we must find ways to get at the corpo-fascist mofos + agendae without sounding like a goonz, here

in fairness to shapiro, he does espouse el prezident0's "two state solution" as being in israel's "best interests" but the US has blocked the same issue in the "UN" historically, and now stands ready to keep the palestinians outa the UN, so when the actions don't match the words, we need to question wtf these globalist asshats are really up to, imo

i think you might enjoy ms weir's "tyleresque" approach to this zionist policy delivery to JPPI

if our ambassador has ever had an original, autonomous, individuated thought since his early childhood and "upbringing" i fail to see what it might be

fight club, BiCheZ!

Thu, 09/15/2011 - 15:20 | 1674305 slewie the pi-rat
slewie the pi-rat's picture

i edited a few minutes ago but just b/c my "emphases" didn't come out in bold

there are international zioninst "reviewing" everything here, and "junking" and responding and reporting intel and so on;  slewie invites them to study the khazar influence and consider how many people who think israel has a right to do more than "exist" remain unaware of the 'difference' including many some-what-brainwashed-perhaps zionists or even just middle-of-the-road guys & goys who don't have a problem w/ a "jewish" state but are wondering wtf is going on, here?

Thu, 09/15/2011 - 13:37 | 1674000 LookingWithAmazement
LookingWithAmazement's picture

Yeah folks, that was the disappointment of the year, the ultimate Black Swan: the Eurobanks, and with them the whole Ponzisystem, are being saved, even the utmost shaky French ones, with unlimited amounts of (paper)dollars from over the world. No Armageddon, no war, no collapse, no emergency food necessary, the lights stay on. All lenders of last resort know their tasks. A run into bankstocks, the euro and out of the PMs followed. Up to the next crisis? No, just a repeat then. Just like the "bankrupt USA and spiking interest" -which never came- after QE2 and the S&P downgrade. Put of those tinfoil hats. China will not rock the boat either in quietly diversifying its massive pile of bonds and dollars. Quando peritura nemo scit. Merry Christmas and a happy 2012. Boring world we live in.

Thu, 09/15/2011 - 13:42 | 1674022 adr
adr's picture

You can't save a Ponzi retard. Eventually the foundation crumbles because someone needs to get paid eventually and the money isn't there.

This move just crippled the foundation and the house is going to fall, you just don;t know when or how long you have to get out.

Thu, 09/15/2011 - 13:53 | 1674065 taraxias
taraxias's picture

Why are you complimenting him calling him a retard?

Thu, 09/15/2011 - 13:44 | 1674030 xtop23
xtop23's picture

 Thats bullshit. Sorry, but this too has an end and this simply gives the elite time to prep a bit more and squeeze the last dregs of profit from the plebs.

 Theres no way this continues ad infinitum.

Thu, 09/15/2011 - 13:50 | 1674053 Smiddywesson
Smiddywesson's picture

I do not agree.  All of this manipulation to keep things from collapsing is a threat to central banking.  They like to operate in secret and emphasize thier need for secrecy and independence.  They like to operate from the shadows.  If they could keep this up forever, they wouldn't need to purchase gold.  This thing is going to come to  an end, exactly when TPTB say so, not before.  Until then, no cost is too high to kick the can.

Thu, 09/15/2011 - 14:06 | 1674104 Corn1945
Corn1945's picture

Yeah, don't worry about it. Just ignore the fact that your stocks have gone absolutely nowhere over the last ten years. Even farther back if you accurately adjust for inflation. And forget financials. You've been absolutely devasted if you held them since 2007. BAC?

No big deal though.

Thu, 09/15/2011 - 13:41 | 1674016 chistletoe
chistletoe's picture

I look for a market crash starting Sept 21 ...

right after Bernanke announces QE3 ....

"buy the rumor, sell the news", works every time ....

Thu, 09/15/2011 - 14:11 | 1674119 zorba THE GREEK
zorba THE GREEK's picture

Sept 21 of what year? They've been keeping this false economy afloat

for years now. What makes you think they have run out of bullets?

If the rules get in the way, they just change them. Nothing is real 

anymore. All we can do is try to protect what we have by taking it

out of harms way. That means stay out of the markets and go into cash

and physical PMs and wait it out, no matter how long it takes.

Thu, 09/15/2011 - 14:29 | 1674167 Belarus
Belarus's picture

No, no, no. I have never seen the market tank, EVER, on FOMC days or right after (at least in the last couple years). Bernank has those algo's greased for his "fifteen minutes of fame." He always loses, just not on the days where the world's eyes are all on him.

Expect volatility, and then to the upside next week. Mark my words: he will disappoint the market and it'll still go up magically. 

Thu, 09/15/2011 - 16:45 | 1674660 Ned Zeppelin
Ned Zeppelin's picture

Agree, but the Euro situation will reappear and each time it will get more violent.  Without a TARP to replace the hollowed out lost equity of these banks, liquidity alone will not save them.

Thu, 09/15/2011 - 13:43 | 1674017 Stack Trace
Stack Trace's picture

Went short financials this afternoon (long FAZ). Been buying from under $56 a share on each dip.   I have been simply shorting financials after each melt-up for the entire month and made nice money with 35 out of 36 trades profitable and the one loss a hedge I closed out for minor loss so I could enjoy Labor Day weekend. I understand I have to be careful of the short squeeze and market manipulation but looking at my 20% return from Sept 1st makes this a hard trade to stop. Of course, I did put in a large position on XLF yesterday in the morning and pulled down an extra couple percent today on the squeeze. Maybe it is premature, but all part of the game.

Thu, 09/15/2011 - 13:46 | 1674038 Belarus
Belarus's picture

Sprott's timing with his public articles always strike me as curious:

http://finance.yahoo.com/echarts?s=GDXJ+Interactive#symbol=gdxj;range=5d;compare=%5Egspc;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=;

A FWIW, if you ever want to follow sprott's advice. Wait at least a week. I learned this particular cause and effect with accumulting physical. When Sprott comes out with a very bullish thesis for PM's, wait a few days for the PM paper market to get flogged. Then buy. 

Thu, 09/15/2011 - 13:47 | 1674047 High Plains Drifter
High Plains Drifter's picture

everbody be quiet. rosie is talking now..........

Thu, 09/15/2011 - 14:07 | 1674105 DUNTHAT
DUNTHAT's picture

NICE HEAD AND SHOULDERS FORMING .....

Thu, 09/15/2011 - 14:46 | 1674214 mblackman
mblackman's picture

I see a possible inverted Head & Shoulders building in the Dow Transports (and IYT See chart at http://fsc.bz/HDI) but the SPX and Dow Inds are more likely putting in a potential triple bottom. 

What stock or index are you seeing the H&S on Dunthat? 

Thu, 09/15/2011 - 14:29 | 1674168 SAME AS IT EVER WAS
SAME AS IT EVER WAS's picture

"Why are the markets surging, when they should be crashing?" There are people who have the means to exploit the markets, it's pretty simple really, FREE money to them. This carrot dangleing from a string, in the form of bearish/bullish news soap operas, ignites the "countertrend." Nothing has changed, its the same as it has always been, its the bankers casino, totally rigged by them, to get the most easy, free money, one could imagine.

Thu, 09/15/2011 - 14:35 | 1674193 mblackman
mblackman's picture

"Tread cautiously if you are tempted to jump in. In other words, even with the bounce off the early August lows, this cyclical bear market is following a very similar path."

Think the author meant "cyclical bull" since we've been in a secular bear since 2000...

But as I learned the hard way in 2009, never underestimate the ability of policy makers to hoodwink investors with programs like POMO, TARP, HAMP, etc. And also don't forget that it's the pre-election year with election year around the corner in which encumbent governments have become very adept at juicing the economy to get re-elected. From 1902 to 2006 buying and holding for 26 months leading up to each election (out of the 4 year election cycle) captured 93% of all Dow gains by being in the market 56% of the time. http://www.traderslog.com/trading-the-election-cycle/

Big question is in this environment of never-ending stimulus and QE, will it work this time around?

Thu, 09/15/2011 - 16:09 | 1674531 Panafrican Funk...
Panafrican Funktron Robot's picture

Didn't work so well in 2008, did it?

Thu, 09/15/2011 - 14:37 | 1674196 Paul67
Paul67's picture

Given the level of fraud going on, what would prevent the Wall Street banks from just bouncing back trades day after day in order to create the facade of a real market?

 

Seems to me if you can create currency out of thin air and pay zero interest on it why can’t you manipulate equity prices up and down all day long as well?  Heck you don’t even have to click a mouse anymore the computers have you covered.  Then just sit back and fleece the few real market participants going in and out of the casino and bang another round of Xmas bonuses, life is good.

 

Reminds me of the twist and turns of the plot line in the movie Weekend at Bernies only this one should be called Weekend at Bernankies.

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