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A Menacing Pause on Wall Street

By Rick Ackerman Posted on October 4, 2012, 12:01 am EDT Last Updated October 4, 2012, 1:41 am EDT

Stocks and index futures have shown a slavish devotion to our Hidden Pivot targets lately.  Only trouble is, the vehicles that we ordinarily trade have barely budged.  The E-Mini S&P futures, for instance.  Yesterday we hung out a very bullish, 1477.50 target for subscribers, implying a 40-point rally equivalent to about 320 Dow points.  This would have been no great 3-day feat during the supposed dog days of summer, when stocks stair-stepped steadily higher no matter what the news. Came mid-August, however, they went flat, taking a 20-day breather to recharge for two single-day spurts that temporarily alleviated the tedium.  Blink and you missed the opportunity. Is the same thing about to happen again?  If not, look out below.  Three weeks ago,

the E-Mini went into a dirge after soaring for two days on the promise that Helicopter Ben was prepared — yet again — to do whatever it takes to keep the stock market afloat until after the election. Not to rain on anyone’s parade, but we would be remiss if we failed to point out that the broad averages have fallen back to where they were before Heli-Ben came galloping to the “rescue” for the umpteenth time.

Stocks Hovering Dangerously

Considering the foregoing, it feels like U.S. stocks are in a very dangerous place, hovering all-too-patiently as they wait for “something” to goose stocks again. We can’t imagine what would set them a-surge, even though we’re on record with a prediction of a 1400-point rally in the Dow, to 14969.  Every time we think too hard about this forecast, however, it feels like we’ve gone too far out on the limb.  Still, it’s based on purely technical factors, most particularly the Dow’s effortless push past a 13502 “Hidden Pivot midpoint” that is associated with the target itself.  We really do trust our technical indicators, but, as we noted here earlier, it is with one leg on the fire escape that we do so now.  In any case, we are no longer asserting that the rally will unfold by election time.  The buying energy just doesn’t seem to be there.  More likely is that stocks will continue to meander until after November 6.

And then what?  For us, at least, it’s beyond imagining that the re-election of Barack Obama would spark a big rally on Wall Street.  Ditto for a Romney victory.  What that implies is that stocks have nowhere to go but down.  But perhaps to 14969 first?  We’ll stick with that prediction, but we’ve also set a Dow alert at 13251. If the Indoos were to fall to that price within a day of breaching the 13367 low (#2) shown in the chart, that would generate a bearish “impulse leg” with potentially destructive power. Although the 14969 target would still be viable in theory, as a practical matter we would put it on the back burner and turn the flame to low.

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  • Maumaj October 4, 2012, 8:40 pm

    Mario Cavolo,
    I was wondering about China’s monetary system. I would tend to believe that a communist government would have full control of it’s money and would not be in a situation similar to what is happening in capitalist countries. Not having to pay interest on mountains of debt certainly would permit a government to invest in more productive ventures. Could you, if you can, inform us on the banking situation in China?

  • RJ October 4, 2012, 6:15 am

    …wondering why we have a play on GE given this…..

    From Porter Stansberry in the S&A Digest:

    “I told you on July 17 we might soon be publishing “letters from the chairman” of another, iconic American company – General Electric. Judging by today’s quarterly report, I think the verdict is in…

    “Here are the core facts: GE owes its creditors $518 billion. That is not a misprint. It owns tangible net assets of only $17 billion. Thus, on a tangible basis, it is currently leveraged by more than 30-to-1. That’s unheard of for a major industrial company. A 3.3% decline in the value of its asset base would wipe out all of its tangible equity. But here’s the real problem. Last quarter, the company produced $2 million in operating income. Again, that’s not a misprint. On $17 billion in assets, the company earned only $2 million. So… what will happen to GE if (or when) the free market sets its borrowing costs?”

    &&&&

    [Note to RJ: You originally posted a lengthier excerpt from S&A Digest, but I’ve shortened it because it doesn’t appear to have been made publicly available yet by Porter. Suffice it to say, the additional facts he presented on GE paint a very grim picture indeed. RA]

    • Rick Ackerman October 4, 2012, 6:45 am

      I’m just a know-nothing chartist and had no idea there was anything seriously wrong at GE when I recommended shorting it two weeks ago at a specific price (i.e., a ‘Hidden Pivot’ target that lies somewhat above current levels). Now, it’s comforting to find out that an astute analyst like Porter — the first guy to have publicly declared, pre-GFC, that Fannie and Freddie were dead meat — has produced facts that explain why GE’s year-old rally looks ready to draw its last gasp.

  • John Jay October 4, 2012, 3:55 am

    Iran is hit by hyperinflation.
    Portugal announces giant tax increases.
    Turkey and Syria are skirmishing.
    Pick a country other than Canada, they are in trouble.
    It is really beginning to spin out of control.
    I hate to root for the Madmen at the Fed and Langley.
    But I am way too old for the Josie Wales lifestyle.
    My expectations just keep dropping by the day.
    Electricity, running water, a sewer system, and a well stocked Vons provide for a luxurious lifestyle compared to most of the world now.

  • gary leibowitz October 3, 2012, 6:08 pm

    I guess I will take a break since no one wants to discuss or debate; just a megaphone to reinforce old assumptions that are very frayed at the edges.

    Now had someone come along and either disputed my data, or explained how that will not affect earnings or the general direction of the market, I would be a happy camper. I never pretend to know it all, and am always happy to learn and realize my mistakes. In fact I yearn for knowledge and a new understanding, so I can be a better investor/trader. This baord has proclaimed for years our imminent demise, yet no one revises or reevaluates their position? In my way of thinking it is not logical. If emotions were taken out of the equation we might actually have a real debate.

    The past assumptions were ludicrous based on actual results over a long period of time. Perhaps there will be a time when some of these assumptions come true, but to deny its ineffectiveness in timing the market does everyone a disservice, especially since this site is geared to the short term trader.

    Oh well…….

    &&&&

    See above, Gary. With one simple statement, I’ve refuted your entire list of supposedly bullish stats. Who cares about the PMI manufacturing index and all the rest of your statistical bilge when two-income households are barely making ends meet, even after foregoing savings? RA

    • TMM October 3, 2012, 9:43 pm

      Much of the corporate profits gained over these last four years were a result of cost-cutting through wage concessions, outsourcing and squeezing suppliers for the last drop. A little known fact is that Apple analyzes their potential suppliers’ financials and then decides how much to pay so the supplier can eke out only the barest of profits.

      It’s the Wal-Mart effect but on a worldwide level. Come into a small town, hire the locals at minimum wage with even fewer benefits, undercut the local shops until they close down, then when there’s nobody left to buy anything, leave behind an empty shell of a building. The only problem with that strategy is that on a global scale, where will they expand when all economies are devastated.

      As for the plethora of positive economic data, it’s akin to your doctor falsifying your test results and medical records. On paper, you’re the picture of good health but in reality, you’re a walking heart attack just waiting to happen.

    • BigTom October 4, 2012, 12:56 am

      Gary – The gov’t & and their cohorts at MSM have been dishing out rosy stats for a long time now, and things have been just getting continually worse for middle america. And when the stats are not rosy, then they are ‘unexpected’, you know, ‘who could see that coming?’ Rosy stats for everything, not just economics. Just a year and a half ago we were being told of the ‘Arab spring/democracy’ thing playing out right before our eyes, ya know, we were living thru history. I for one did not believe that from the start and we all know how that went. Today who believes what gov’t agencies tell us thru MSM, be it social, political, economic or what ever the subject is about which they are blowing smoke all over us. You probably have a hard time finding anyone here jumping in to debate your ‘science’ because the ‘science’ here is dubious….It’s hard for an englishman and a chinaman to debate when neither understands the others language……

    • gary leibowitz October 4, 2012, 5:47 am

      Real simple. Show me the beef! Earnings is what drives the market. If the 30 year drawdown in consumer standard of living results in less spending and earnings than by all means SHOW ME!

      How can the two be opposite each other? If it isn’t the consumer that’s puting money into corporate bottom line than something else is. You can’t base earnings than on lower standard of living. Perhaps the consumer debt load has something to do with it. Perhaps the extremely low rates for the last few years has something to do with it.

      In real simple terms. Rick uses a technical method to determine how to play the market. He hasn’t determined the cause and affect, only the markers on the technical device. Now he comes along and states that we will have imminent drop in the market because of fundamental reason A. How does A affect the market moves? Surely if A was used for the last 30 years and was a direct correlation to the movement of the market than we would have had a 30 year bear market. Answer. There is no correlation. Try and find one that WORKS!

      You can’t reason with the market. You have to determine the mechanism that affects the market. Just becuase reason would dictate that a lower standard of living is bad and therefore the market MUST react accordingly might seem logical but not in the practical world. It hasn’t happened that way. These are facts. You want to pretend these facts somehow don’t matter?

      Am I getting thru? I have found a correlation, not always correct, but in the majority of times it is. Earnings and expected future earnings verses the movement of the stock market. If earnings are low but future expectations are high than the market can and should go up. If current earnings are low and future earnings are going to be even lower than expect the market should go down. Simple rules and math. I am afterall a simple guy that likes seeing actual connections between the two.

      &&&&&&

      More hallucinations. In fact, I’ve predicted an “imminent drop” in the Dow to…14969. C’mon, Gary, give it a rest. You surely need one.       RA

    • gary leibowitz October 4, 2012, 6:01 am

      One more time. All, I mean all reasons for an imminent crash MUST, I repeat must eventually be reflected in earnings. If we are attacked by terrorist the street will assume consumers will run scared and a major contraction will result. You don’t need to wait for earnings to show up badly to extrapolate that it will happen.

      I need a connection between data point A and a reaction within 6 months that will cause earnings to fall hard. How else does wall street play the game? They look at current environment, add assumptions on future trends, and come up with an estimate on future earnings. YOU have to find the data points and events that will most affect the change in earnings expectations. Everything I see points to a heating domestic economy. Surely if the data is fake than earnings will NOT show up. There is no magic behind this. No amount of manipulated/fake numbers can fool earnings. Unless you fake the earnings themselves. Any evidence of that?

      For years I listen to every conceivable reason why the market must fall very soon because bad things are happening. When they don’t you refuse to see why. I don’t. I need to know why. I need a plan/device just like Rick uses. I can’t just guess. I need someone to show me they have the answers and it works 80 percent of the time, back testing it.

      The sky might be falling. Has it affectd the stock market yet? Why not?

      &&&&&&7

      Earnings are meaningless, Gary. What matters is whether investors — tens of millions of them irrational and, frankly, dismally stupid — are in the mood to pay four times earnings, ten times earnings, twenty times earnings…or fifty. In these excruciatingly interesting times, isn’t there just a wee chance that the current mood could change dramatically overnight? RA

    • mario cavolo October 4, 2012, 10:26 am

      I am sort of a self-appointed referee on this one. How dare I, yet let me assume I’ve earned some right to voice an intelligent opinion as a contributor for over three years…

      You are undoubtedly a pain in Rick’s ass, yet he’s ok with that because you add meaningful points to the board. I read it all, and you do push it, to say the least. Regardless of disparity in views, you write with seriousness, genuine intent. So does Rick. So do I.

      At the same time, Rick loves to be the bear, yet he TRADES both sides with his method, no matter his more bearish view on affairs…so again, I think you’re not giving him proper credit for that…

      Rick is right about the disastrous state of underlying affairs, in terms of the actual enormity of the numbers, and in terms of the corruption. Yet, you, as me, insist on also recognizing that somehow, even amongst all those piles of genuine s*#t, good stuff is somehow happening too…

      Tell my retired mother-in-law and 200 million families like hers across China that life sucks now and she will look at you like you are obviously delusional. She bought an apartment in Shenyang ten years ago for $15,000, and was working as a schoolteacher on a salary not worth mentioning, that is now worth $100,000 with a new subway line a few minutes walk’ away. Truly miraculous to her… Yet the similar thing had happened in America when a person bought a home in the 60’s for $20k, even now priced at $150k after the big real estate bust. But the story is not so simple, is it? as the other side of those numbers we must also look at is the purchasing power of the given currency for a given product in a given country….and on the story goes….

      Cheers, Mario

    • Carol October 4, 2012, 5:07 pm

      Rick “when two-income households are barely making ends meet, even after foregoing savings?”

      I have an even better “measuring stick” to show the slowwwww gradual decrease in quality of living in the good ol usa.

      When I was a youngster my son’s age (and my mother did NOT have to work), I had a part time job to put myself through college (with NO help from parents, no loans, no grants, no help whatsoever). My PART-TIME jobs paid my school expenses, my living expenses (of course I had roommates), etc. I could work for one hour (for example) at minimum wage and it would buy me approximately 10 gallons of gas. Since all other food, utilities, and consumables were/are associated with cost of fuel they were equally affordable. Nowadays, the young (or anyone making minimum wage) can only get approximately 2 gallons of gas for his/her one hour of working such a job. The bottom line is that costs (with huge understated inflation) haven’t kept up with wages (at least at the entry level – minimum level). The youth are very disenfranchised in our society today. I feel very sad for them as a group and for all of us as a society because of the Ponzi scheme (fraudulent/thievery) money system that has been foisted upon us. Because I know and understand the money system I could NEVER be a bull, since the markets are clearly a fraud! So unlike Gary, who buys into all the fraud and corruption, I cannot (it is a personality flaw I guess). As Winston Churchill once said (paraphrasing), many a man has stumbled upon the truth and got up and dusted himself off and acted as if nothing happen. I am NOT one of THOSE many as once I found the truth I did NOT go on as if nothing had happened.

      &&&&&&&

      When the movie ‘Back to the Future’ brings us lovingly back to the Fifties, there’s a scene where a motorist pulls up to the pump at a gas station and a bunch of attendants, all wearing bow ties and white hats, swarm the car. One checks under the hood, another pumps gas, a third checks the tires. What struck me in this visual blitz of nostalgia is that each of these guys was probably the sole breadwinners in his household, and that each, with a little scrimping and saving, would have been able to sock away enough to put the kids through college — even after paying bills for food, doctor bills, and putting a 20% downpayment on a home.

      Few Americans born after the 1960s would understand the ways in which the standard of living was so much higher back then. And today’s under-30 generation, wholly ignorant of what we used to call ‘the good life,’ would remark that America didn’t even have iPhones or flat-screen TVs back then. RA

    • redwilldanaher October 4, 2012, 5:49 pm

      Excellent pop-culture reference. Don’t think for a moment that TPTB didn’t love the “women’s” movement. Nothing better than an over-supply of labor combined with even more impulse purchase opportunities. Also it allows for the “little ones” to be more exposed and thus more malleable for big govt. and big media complex. And the laments could go on and on…

    • Cam Fitzgerald October 5, 2012, 1:08 am

      I have another measuring stick, Carol. Way back when (in the old days) when I got my first real job it paid 12.50 an hour. Decades have passed and the same job now has a lower entry rate. Back then I could save thousands every year without busting an artery, pay all my bills and live pretty well. The same guy doing that job today can hardly afford Mamas basement and a few beer a week.

  • ken horn October 3, 2012, 4:33 pm

    I believe that after the election, no matter who wins, the market will take a tumble. Therefore, although in the short term we can get a “last gasp”, discretion is the better part of valor. Any Int’l X-factor, such as Europe, China, Iran, Israel, etal. can be the catalyst for a steep drop. Thus, weighing the risk-reward spectrum, I prefer to keep my powder dry & wait for better opportunities to play, which I am convinced will happen in the upcoming months.

    • Rick Ackerman October 3, 2012, 9:24 pm

      I Agree. If Obama wins and the stock market somehow finds reason to celebrate, Wall Street is even sicker than I thought. Ditto for a Romney rally.

    • mario cavolo October 4, 2012, 10:03 am

      ….or the beginning of a rally, or years of sideways between 1350 and 1450…all equally possible with none of us really having a clue beforehand which it will be….

      Looking at the Shanghai index at serious lows, one might think it a grand idea to start taking positions there, such as in CAF…. but that’s not for short term trading such as Rick’s more accurate trading guidance…

  • MEGA-BEAR October 3, 2012, 4:15 pm

    rick,
    you have discrepancy of ‘dow alert #’, in the last paragraph of your article above

    you wrote in your last paragraph ‘set a dow alert at 13251’;
    yet, your article’s chart, and today’s free forecast, ‘set a dow alert at 13351’.
    (I think you mean 13251, sept. 10’s intra-day low, right?)

    btw, by coincidence, I saw the work of another chart technician today (an experienced elliott waver), which explained both your current bull targets, since he has the same exact targets as you: at your short-term dji 13,802 (he has 13,800 even), and your longer term 14,969 (he has 14,968).

    it’s done by measuring an ‘a-b-c’ rising (yet corrective) pattern,
    in which ‘a’ is the entire move up from sept 2011 low, up to may 2012 high,
    and then you project, by both your system’s rules,
    that ‘c’ should be MIN. .618 (fib#) of ‘a’ (projects to 13,800 dji)
    or at MAX., ‘a’ = ‘c’ (which then project to the incredible 14,968 dji).

    his ‘spx bear alert’ level is at 1426, which probably correlates to your 13,251 dji ‘bearish alert’ level.

    as to myself, looking at the extreme levels of current bullishness IN THE TECH CHARTS, in both gold and spx, it’s hard to imagine how the bullish trend can be stopped, at least until after the elections; and the greater likelyhood is (though I hate to admit it), that 13,800 dji looks like it is soon to be achieved, and likewise, a penetration of gold over the current $1,800 barrier– which, when it does break through it, should create an upward (short-covering) explosion, to take gold to quickly re-test it’s prior $1925 high.

    however, that said, I continue to strongly opine that the 2007 dji high of 14,200 will NOT be taken out, because it would destroy it’s current perfectly classic TWENTY YEARS LONG massive h&s formation; which, IF it was taken out (on way to you ‘c’ = ‘a’ 14,969), would create a MAJOR, LONG-term cyclical BULLmarket impulsive leg, from which 14,969 would be only the blast-off point–and then, over next 2-3 years, probably going up to 18,000 dji minimum (18,000dji# comes from to other decades-long mega-bullish studies I’ve recently read).

    However, as to myself, I continue to strongly opine that the current u.s.a. markets are STILL in a BEARmarket rally—albeit being the greatest bear market rally of all time. (btw, I also don’t think gold will break it’s prior high).

    and so, until 14,200 dji falls, I will continue to be—MEGA-BEARISH.

    Because,
    just like ellworth toohey, from what I’ve seen of man
    ‘I play the stock market of the spirit, and I sell short’.

    &&&&&&

    I’ve corrected the chart to reflect the actual low at 13251. Thanks for the heads-up.

    A key similarity between Elliott Wave Theory and Hidden Pivot Analysis is that both methods precisely account for differences between impulsive moves and merely corrective ones. A single tick added to a rally or decline can sometimes make all the difference.

    Incidentally, I’m still waiting for a valid e-mail address for you that would allow us to communicate privately. RA

  • gary leibowitz October 3, 2012, 3:16 pm

    Mario,

    On your prior post regarding the power of Asia, I would agree with your conclusions. I however think the timing couldn’t have been better. They are the wild west of our 1800’s. Expansion, growing pains, an almost monopolistic control on their economy and trading partners, reminds me of how we were before Europe and South America caught up. In fact it could be a blessing of sorts to help in the rebuilding after this world debt crisis abates.

    My insistence that domestically we are about to heat up, seems to be playing out. The recent good news in housing, manufacturing, consumer spending and borrowing, business confidence, all point to a good environment for earnings going forward. While most here ignore the data points, I can tell you that for a super tanker of an economy there seems to be a big buildup in steam. Jobs and easing of laon restrictions will be the last to show up.

    For now the possibility of another flash crash, or start of a major downturn is practically nill. Even congress is getting involved in trying to place trade stops on these run-away error filled program trades. It seems the last flash crash was caused by a badly written software that didn’t/couldn’t get corrected for 45 minutes.

    • gary leibowitz October 3, 2012, 3:54 pm

      Rick,

      Sorry for the contrary viewpoints but the reality is that the market is doing very well this whole year despite all the headwinds. If you present a very negative view of the state of affairs I feel I should counter with what I consider data points that present a different outcome.

      I just looked at the last 2 weeks of government data and compiled a list of positive to negative results:

      On the negaive side:
      1 – Consumer confidence and comfort
      2 – Richmond and Dallas manufacturing index

      On the positive side:
      1 – Motor vehicle sales
      2 – Redbook
      3 – MBA purchasing index
      4- ADP employment report
      5 – ISM non-manufacturing index
      6- PMI manufacturing index
      7- ISM manufacturing index
      8- construction spending (while down it still reflect the best showing in years)
      9- Chicago PMI
      10- Consumer sentiment
      11- Factory orders
      12- GDP
      13- Corporate profits
      14- Chain store sales
      15- Jobless claims
      16- Personal Income
      17- Kansas City manufacturing index
      18- Pending Home sales
      19- Beige book
      20-ICSC Goldman store sales
      21- S&P Case Shiller HPI

      Some of the positives are big surprises, like home costs, car sales, personal income. In this environemnt combined with the FED announcement that rates will remain very low for years to come I can’t see any outcome but up for the stock market. Clearly the concerns over the EU are not a big factor for our domestic growth.

      This is only a short term analysis, for perhaps 3 to 6 months out.

      &&&&&&&

      The markets are doing very well despite all the headwinds? When have I ever stated otherwise? My current prediction for the Dow Industrials calls for a rally to 14969. Anyway, one fact alone turns your list of 21 supposed “positives” into chop suey: real incomes are falling, resulting in a declining standard of living for most Americans. Would you care to argue with that?       RA

    • fallingman October 3, 2012, 4:50 pm

      Honestly Gary, don’t feel as if you have to say something. I’d be okay for you to be silent occasionally.

      We’d manage somehow.

    • Chuck October 3, 2012, 5:21 pm

      I can’t help but wonder if the ‘capitalists’ that create businesses in this country are actually worried about the quality of employees in the USA. They seem to want to spend less for staff and will use ‘illegals’ or outsource to China. Could it be that the young people in this country are not hard workers…..like they used to be? What else would explain the lack of hiring……I mean come on…..does anyone with half a brain really believe these BLS data anymore?

    • BDTR October 3, 2012, 5:30 pm

      Manage a boringly agreeable knitting circle maybe, f-man?

    • Chuck October 3, 2012, 5:33 pm

      I could even be that this overall sense of entitlement has swept the whole country…….do people think that they don’t have to work hard anymore to get the same amount of ‘entitlement’ that they used to? After all, free phones, EBT cards (food stamps), changing mortgages agreements, unemployment for years, disability ……medicare…..social security……keep it coming is the mantra.

    • gary leibowitz October 3, 2012, 9:31 pm

      Rick,

      Once again I state facts that relate to the market. You state data that has shown income falling for over 30 years. That 30 year period had HUGE stock market gains; no correlation. There are actually two types of income, labor and capital based. With refinancing at a huge pace this last year that is more money in peoples pockets. With new home prices still very reasonable compared to the peak that too accounts for saved money. A depreciating housing market has its advantages, as does the government controlled/sanctioned low rates. Not a one way street.
      In fact the last data on income, from last week shows pretty nice advancement these last few months.

      How else can you explain the fact that the consumer has not stopped buying and spending? The dozens of data points are consistent with that fact. Earnings by corporations are also, as is recent housing price surge.

      You continue to deal in generalities but have no connection to todays market and it’s immediate outcome. If all the things you state are so bad than surely it will eventualy be reflected in earnings and expectations.

      You can’t have good earnings this long without the consumer. Is your data showing that we will fall off a cliff anytime soon?

      I hope that answers your question. Sorry if long winded. Sorry to continue these posts, but you did ask me a question. Suggest no more questions if you don’t want answers.

      &&&&&&&

      Yeah, right: generalities — that you continue to evade. The fact is, two-income households don’t live nearly as well as single-income households of the 1950s. I know a few such households that went hundreds of thousands in debt to put their kids through college. These days, those kids can’t even get jobs, let alone high-paying jobs that would enable them to dig themselves and their parents out of a six-figure hole.

      Anyway, who cares about the dumb-assed, criminally rigged, economically worthless markets, phony asset values and your cooked Labor Department statistics. Look all around you, not at the statistical lies that would purport to convince us that everything is just peachy. The phenomenon of “working wives” is itself a marker for the decline of America’s middle class. RA

    • mario cavolo October 4, 2012, 9:59 am

      SCHISM! I keep telling you guys 🙂 , that’s the best explanation. Its two countries now, torn in half. You’ve got 150 million doing better than ever, with their success, their wealth, their employment, thei productivity deeply engrained in today’s global economy, with 50% of the S&P500’s earnings being international. And that powerful trend, powerful expansionary wave, despite the problems, will only continue to grow as a supertrend, broadly, across several global expansionary supertrends including China-driven reverse globalization…more visas than ever being granted (90% approvals) to Chinese into America and other countries…read the writing so clearly written on the govt’s wall…

      Then there’s the other half of the U.S., poor folks in the wrong place at the wrong time in world history a the hands of a banker-elites driven govt; the declining, destroyed, raped, pillaged, deceived, brainwashed, middle class of yester year….a horrible story, a shame, a disgrace to my Italian family’s ancestors who immigrated to the dream of America 100 years ago…

      I stand that is an accurate description of current affairs, and goes long way to explain that we must be mindful of both sides of this global story. Incredible times in which our generation lives.

      Cheers, Mario

    • redwilldanaher October 4, 2012, 3:32 pm

      Seriously Gary, Rick just tossed you around like a rag doll with a few paragraphs. Stop pushing the lies. Be bullish based on expectations that the rigged game has further to run but please don’t treat anything that gets put out by State Media or the Corporate Kleptogarchs as if it is fact. It’s gone from comedic to tragic to now sickening to read your regurgitation of the BS.

  • John Jay October 3, 2012, 3:01 pm

    “’Curiouser and curiouser!’ Cried Alice (she was so much surprised, that for the moment she quite forgot how to speak good English). ’Now I’m opening out like the largest telescope that ever was! Good-bye, feet!’ (for when she looked down at her feet they seemed to be almost out of sight, they were getting so far off).” (Ch. 2)

    I think that quote from “Alice in Wonderland” is in order.
    “Alice in Wonderland” economic system.
    “Apocalypse Now” foreign policy.
    “Mad Max” social order.
    That’s three strikes, isn’t it?

    • BDTR October 3, 2012, 5:18 pm

      Next up, ‘The Wizard of Oz’ revolution.

      ..where Dorothy, Scarecrow, Tin Man and Cowardly Lion liquidate the Wicked Witch of the Fed, liberate the munchkins and, …follow the yellow brick road.

  • bc October 3, 2012, 7:24 am

    http://www.oftwominds.com/blog.html

    Agreed. Wall Street is laying off big time now. Capitulation is in the air.

    • redwilldanaher October 3, 2012, 5:31 pm

      Thanks for the CHS link. As usual he’s right but as we know reality will not matter until after the current fraud bubble has popped. That could be weeks from now or years from now with much higher price levels achieved artificially but also aided by the hear no evil, see no evil crowd. They seize upon “beats” that amount to fraudulent levels being surpassed by fraudulent data and declare that things are truly better. There is no point in trying to have a dialogue with folks that prefer to swallow the lies, all of them in fact…

  • redwilldanaher October 3, 2012, 4:28 am

    http://www.bloomberg.com/news/2012-10-02/bernanke-seeks-gains-for-stocks-in-push-for-jobs-economy.html

    As most here have known all along, it’s all about hyper-manipulation and has been for over 3 years. Nothing but a complete rigging of the so-called system. “Add more smoke, reposition those mirrors…”


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