We were out with a prediction of a 600-point Dow rally Monday night, so yesterday’s 349-point downpayment was hardly a surprise. Even so, some will shake their heads in disbelief, unable to comprehend how huge rallies can occur for no good reason. This one, like so many others, was ginned up by cheats and con-artists on Wall Street who found support in phony economic news concocted by bureaucratic liars and hyped by a mainstream media with a fourth-grader’s understanding of economics.
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ZeroHedge culled two headlines that explained the whole thing: Wall Street Gains as Weak Data Spurs Stimulus Hopes; and, Wall Street Surges as Data Points to Economic Recovery. It’s difficult to imagine these headlines appearing on the same day, but they did. No matter. On Wall Street, and in the editorial rooms, ALL news is bullish, and when the headlines flatly contradict each other, that is hardly reason for concern or doubt.
To those who would jump in the path of this rally and short it just to show Mr. Market who’s boss, here’s an insightful ZeroHedge post from one Conrad Dobler to think about while you cool down: Stop thinking your bearish bets have to be right NOW! Timing is a giant bitch and yes things are terrible, awful, manipulated, bubblish to the extreme but no one knows where the break point is. Being early is being wrong, being late is being wrong in terms of the market.
In terms of the reality of our economy everyone is right, we’re tending to grind the living shit out of the productive economy and we’re seeing malinvestment run rampant based on untold market manipulations. It’s impossible to tell from a market perspective when that will give way to doom and despair because the market is priced in fiat dollars which are of infinite supply.
So stop thinking in terms of the real economy and think in terms of that and then re-consider your shorts. Do what you will, nothing I say is ever investment advice it’s just a comment on the economics per my opinion. Personally I would not short this here. There is a tidal wave of short interest as well as economic stimulus at least here in the US in terms of low gas prices and low interest rates the herd is unpredictable if they all collectively decide it’s sunny outside this will warp higher even if it’s all fake in terms of the true foundations of the economy.
Correct me if I’m wrong, but is not the world awash in oil? Should not the fair market value oil have a $20.00 handle? Well, if so it occurs to me that the Da Boyz are doing the same thing to oil via naked longs as they are doing to gold via naked shorts. It’s a paper two tiered market with no basis in reality. Can you say eegeegeeous manipoolatioun in your best Saturday Night Eddie Murphy imitation voice?
Gee, come to think of it, nothing has any basis in reality.
The four year drought in California is caused by geo-engineering (www.geoengineeringwatch.org or http://www.carnicominstitute.org) and yet no has a clue. Gerry Brown knows all about the “chem- trails” which consist of aluminum, barium, and strontium.
See this is egregious manipulation of our environment and is the real cause for global warming. Like I said, no basis in reality.