Monday, September 26, 2011

Nothing Has Changed Except Prices of Stocks; Silver, Gold Still Being Punished

The start of the week was another one of those sessions that made little sense in the grand theme of things, unless you're one of those poor, misled types who believe the Fed and central bankers are working for your benefit, not their own, and can magically pull rainbow-belching unicorns from their nether parts.

The rest of us just marvel at the machinations of the market amid the worst economic crisis since the Great Depression and laugh or cry, depending on our moods and personal situations.

Volatility is the trader's friend, but an investor's nightmare. Stocks jumping around, up and down, without regard to fundamentals - exactly what's been happening in US equity markets since mid-July - does not make for a friendly investment environment. Your money is just as easily chewed up whether you are long or short. Only the best investors, or those with inside knowledge, like our hedge fund and banking friends running the computer algos on Wall Street, will survive. The small investor literally has no chance of turning trades into profits as the deck is stacked against him or her by the big money players.

So, we watch and wait for Europe to implode, the US government to shut down, or the massive federal debt to either be defaulted upon or paid off (yeah, that's a good one!). Sooner or later, all the debt will bury all the assets of stocks and investors will be left with worthless paper. Or it won't. One never knows what Fed Chairman Ben Bernanke, President Obama or the insipid, asinine congress will do next, but one thing's for sure, if it's the congress or the president, it's not likely to amount to anything, and even Bernanke's magic touch seems to be a little less deft these days. Confidence is what makes markets, and almost all confidence has been destroyed by decades of borrowing and spending without control, lying to the American people (it happens in Europe, Japan and China too) about the state of the economy while the ringleaders of the criminal banking cartel walk freely.

One item from the weekend was interesting. It seems the Federal Reserve has put out a RFP for a Social Media monitoring system. This is nothing less than an attempt to quell negative public opinion (maybe they can start with Rep. Ron Paul) about the workings and dealings of the Fed. Since the Fed is a private bank, their snooping and interloping is pretty scary stuff, considering they are running the ship that creates monetary policy for the US, and, to a degree, the entire planet. You can read the RFP here.

From the Salon article linked above:
Federal Reserve Bank of New York has issued a "Request for Proposal" to suppliers who may be interested in participating in the development of a "Sentiment Analysis And Social Media Monitoring Solution". In other words, the Federal Reserve wants to develop a highly sophisticated system that will gather everything that you and I say about the Federal Reserve on the Internet and that will analyze what our feelings about the Fed are. Obviously, any "positive" feelings about the Fed would not be a problem. What they really want to do is to gather information on everyone that views the Federal Reserve negatively. It is unclear how they plan to use this information once they have it, but considering how many alternative media sources have been shut down lately, this is obviously a very troubling sign.

Are you worried? You shouldn't be, so long as you say nice things about the Fed, like, "they're the greatest central bankers ever!"

See, not so bad.

Dow 11,043.86, +272.38 (2.53%)
NASDAQ 2,516.69, +33.46 (1.35%)
S&P 500 1,162.95, +26.52 (2.33%)
NYSE Composite 6,940.81, +170.08 (2.51%)
NASDAQ Volume 2,018,322,875
NYSE Volume 4,553,576,500
Combined NYSE & NASDAQ Advance - Decline: 3898-1762
Combined NYSE & NASDAQ New highs - New lows: 16-431
WTI crude oil: 80.24, +0.39
Gold: 1623.50, -33.70
Silver: 30.73, -0.20

Note that the New highs - new lows are still screaming "SELL" every day. We are in a trough and the stocks can't seem to get out of this range. The best guess is that the next move is down and into bear market territory, at least that's what "old reliable" new high - new low data is saying.

The precious metals were shoved all over the map again today. In Thailand, the silver futures exchange was shut down via a circuit breaker when the metal traded down more than 10% in the opening minutes. The CME announced higher margin requirements on both metals. Odd, because they are already down so much over the past week. This is the global banking cartel at its worst.

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