by John Galt
June 29, 2009
“This market continues to be propped up by government intervention and manipulation…..”
Larry Levin, Secretsoftraders.com on CNBC (Video Here)
Let me get this straight; until Mr. Levin spoke today, drawing the ire of Steve Liesman in the process who also participated in that segment, few people wanted to even consider or accept the fact that the government has been active in all aspects of America’s capital markets for years now but once it becomes “obvious” to all then people slap themselves in the forehead and go “wow, I could never have imagined this happening here.” Folks, the reality is not just the PPT or plunger team, but that America’s political elites along with the Fed now have controlling interests in so many trading desks that the “market” is nothing more than a grand video game to most of this crowd. The fact that they have been able to decimate so many retiree’s nest eggs and force a greater dependency on the government either indicates a grand plan to create a new generation of elderly welfare addicts or just blithering incompetence. I’ll let you draw your own conclusion.
This is what you could easily call a week of vacation but a surprise revision to last month’s unemployment numbers, which I am counting on, and a big number this month could trigger a shock to the system right before the second quarter earnings reports start to roll out. The Russell 2000 and the US Dollar were not what I would call reassuring aspects of the market and the Dow Transports basically served the role of spoiler to today’s lightly traded rally. What we could see after this holiday week with more bad news on the way and perhaps indications that the idiots in the Senate will pass the Cap and Trade fiasco along with some bad earnings reports and the bear market rally could start that long slow painful rollover into a bear market rout. Who knows at this point in time, but one thing for sure: With the government actively interjecting into almost every financial market inside of our borders it is only a matter of time before the foreign investors finish the process of extracting themselves from our nightmare.
That’s when life in the U.S. of A. will get very and disturbingly interesting.
The bananas poured themselves a cold one after the Turbo Timmy PPT bought a moral victory today to keep the country focused on more important issues like the celebrity death of the day or some other such nonsense. The DJIA was up over 90 points but on only 1.063 billion shares on the NYSE and nothing really special beyond that.
The UTT-BUGLY Chart of the Day is actually a “bullish” chart but it is UTTBUGLY because of its implications for the dollar in the future and the fact that there is a growing market for shorting our currency and betting on a major decline. The UUP and UDN are two good extreme ETFs to watch in addition to the dollar index for some idea as to where people are betting on the future of our beloved and ever more worthless buck.