More Trouble for Fed Thimble-Riggers

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As if the thimble-riggers at the Fed didn’t have enough to worry about, the dollar turned rabid last week, threatening to transform America’s still-undeclared recession into a downturn for the history books. The greenback’s rally pushed the price of U.S. goods even higher for foreigners while increasing the cost of fuel that they pay for mostly in dollars. In theory the dollar’s strength should have alleviated pain at the pump for U.S. consumers. Unfortunately, however, with the cost of gas and diesel fuel thrusting to mind-numbing new highs each week, the effect has been so muted as to be barely noticeable.

Wall Street has noticed the gathering storm, however, and is doing everything possible to distribute stock to the rubes before pulling the plug. Last week, for instance, Amazon was trading down around $110 a share following a 20-for-one stock split. The idea that stock splits are bullish is a pernicious lie that has gained currency because most investors tend to think that more of anything is better. Now widows and pensioners who owned just a few shares of AMZN at $2000-plus per now have twenty times as many shares. How fabulous is that? They naturally expect those shares to rise eventually to their pre-split price, which would not be unusual in a prolonged bull market. But we are quite possibly in a bear market now, and the outcome may not be so felicitous as AMZN’s peanut gallery might imagine. Whatever the case, you can count on insiders to unload as much of the stock as they can now that shares have become affordable for the masses.

  • RICHARD CHARLES June 18, 2022, 5:09 pm

    Jason Goepfert
    @jasongoepfert

    Jun 16
    More than 90% of stocks in the S&P 500 declined today.

    It’s the 5th time in the past 7 days.
    Since 1928, there have been exactly 0 precedents.
    This is the most overwhelming display of selling in history.

  • RICHARD CHARLES June 17, 2022, 1:09 pm

    We bought GOLD Calls
    Our target for GOLD is + 98 % from 19.425 to 37.5 + 2 % Dividend
    (Option prices reflect dividends)

  • RICHARD CHARLES June 12, 2022, 8:13 pm

    Our target for AMZN is – 65 % from 114.5 to 40.04.
    AMZN is oversold and could bounce to 120.225.


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