<a href=”https://quillian.net/blog/wp-content/uploads/2016/03/032315sp.jpg”><img class=”alignleft wp-image-3055″ src=”https://quillian.net/blog/wp-content/uploads/2016/03/032315sp.jpg” alt=”032315s&p” width=”365″ height=”252″ /></a>Something changed today. The news media ran some stories that focused on underlying weakness in the economy and the stock market. The media doesn’t normally report news that might cause investors to sell stocks or position themselves for a general economic downturn.
Informing the public is an old world function of the news media. Modern news organizations are now behavior and opinion management services. Cooperation with government is at an apex. There is one circumstance under which important news is actually reported and reported actually. That is if the news is on the verge of becoming apparent from an uncontrollable source. Major news organizations cannot afford to appear unaware or uninformed. The long awaited collapse of the economy and the stock market may be at hand. Notice the intermediate uptrend circled in red. Do not be lulled into believing this rally has been fueled by Americans investing money. It has all been caused by algorithms drawing in short sellers and running the stops and the Fed trying to guarantee the profitability of buybacks with a wink and a nod. The news media participates by reporting only upbeat financial stories. The Fed also gives advance information to institutions which help elevate asset prices. As nice as the rally looks on a chart, it has not been good enough. The public has not been drawn in and neither have honest institutions. Back in the fall, I forecast a dip in early 2106 during which the appearance would be that a bear market had started. The elite would try to draw in as many short sellers as possible to use as fuel to launch a new up leg. My take is that all efforts were not good enough and now stock are ready to collapse. All the kings horses and all of the kings men can no longer save the stock market. When a fascist system collapses the damage is staggering. Every American is in danger of losing everything he owns. As to my stock positions, I have added a few shorts in companies with huge debt to equity ratios and have closed out no bear etfs. Of course I don’t place stops. There is no way to profit from short sales in a rigged market if stop orders are used. |
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