Tuesday, June 22, 2010

Global Economy Set to Implode

Once again the supposed "Masters of the Universe," sitting high inside their glassy offices in lower Manhattan, managed to persuade stocks to gap higher at the open. These geniuses then managed to sell managed positions all day long at a profit as the faux rally fizzled before the collective public eyes.

The Dow Jones Industrials were up nearly 150 points by 10:00 am, but stocks finished close to their lows of the day, actually rallying 50 points in the final minutes of trading to produce an artificial, moderately-lower close.

This is what the US stock markets have become, the paradise of insider traders and the laughing stock of the world. The "Masters of the Universe" are about to go down in flames lit with worthless paper currencies, backed by nothing more than the good word of scoundrels, cheats, liars and thieves.

Inexorably, stocks will lose value over time during any secular bear market, current company - which began in late summer, 2007 - included. daily fluctuations with accompanying conflicting internal data, such as today's, are trademarks of primary trend bear markets.

Dow 10,442.41, -8.23 (0.08%)
NASDAQ 2,289.09, -20.71 (0.90%)
S&P 500 1,113.20, 0.00 (0.00%)
NYSE Composite 6,978.86, -9.38 (0.13%)

Volume was moderate to low, but decliners far outnumbered advancing issues, 3986-2577, though the number of new highs, goosed by the mammoth opening head-fake, outweighed the new lows, 229-77. It is just this kind on non-confirmation and divergence that spells bear market in simple terms. The session was also an engulfing event, with the highs and lows exceeding those of the previous day, a sure set-up for an immediate market turn.

NYSE Volume 5,192,862,000.00
NASDAQ Volume 1,916,218,625.00

By deceiving most of the US market into believing that n upward revaluation of the Yuan was a positive for the Americas, the Wall Street insider swine managed to create a perfect selling opportunity for already-overpriced stocks they desperately sought to unload. It is why market-opening gaps - higher or lower - are never of any benefit to small investors, who all-too-often buy into these fake rallies and are subsequently left holding positions of lesser value by the end of the day.

Today's result was garden-variety manipulation, nothing that hasn't been seen countless times over the past three years, though it surely is a signal to get out of stocks with all due urgency.

Crude oil continued it's range-bound run higher, up 64 cents, to $77.82. Meanwhile, precious metals fell precipitously, with gold off by $17.50, to $1,239.70, and silver losing 73 cents, backing down to $18.80 per ounce.

In a rational world, with stocks down, the metals would likely rise, but there is nothing even remotely-resembling rationality in global markets. Nations, central banks and money center banks continue to pile more debt upon existing debt, as truly an unsustainable condition as that which preceded and touched off the crisis of 2008-09.

Paper currency is upon the deathbed, but gold and silver - viable alternatives - are being maintained (controlled, manipulated) at prices anywhere from 30-150% lower than true market value.

Like a stick of dynamite in an untended mine, all it is going to take is somebody or something to light the fuse for the entire global financial system to tumble into a nightmarish decline.

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