The highlight of the past week was Tuesday as the Fed met to discuss interest rates. I'm laughing out loud now as interest rates will be zero forever and ever. I'm on record many times on this. The idiots at the Fed never read articles like this so they actually think there is a functioning economy after rates hit the floor. There is not. Rather, the Fed meets to contemplate the behavior of the Dow Jones Industrial Average and all other like indices. The Fed's only function now is to fornicate the indices higher in hopes of fooling the dopes in the media and mainstream into thinking all is well. They are also talking 'deflation'. So let's break it down. ON WHAT F#@%*!% PLANET ARE THOSE F%&$%&* IDIOTS LOOKING AT????? Maybe the biggest lie ever told was Cain lying to God about the whereabouts of his brother, Able. To offer deflation as an excuse for quantitative easing is right there with Cain. Bernanke is beginning to make Cain look like Billy Graham! What a bald-faced, ignorant, moronish lie!!!
Monday was like every other 'fornicating Fed' pattern day. The Dow opens with 20 minutes of selling and wiggling and then it is hit with a powerful, heavy volume buy episode that lasts about thirty minutes. The indices of the world go sideways for a few hours and then more buying hits around 2:30 or 3:00 in the afternoon. Again, the Fed, or PPT if you will, wants the indices going up like Jack's beanstalk so they can see what is up there in the clouds. The main strategy is to fatally injure the sellers of the world. No selling leads to higher index averages. Higher index averages make the idiots of the world think economic bliss.
Tuesday, of course, was a bit different as the indices, or as I like to view them, casinos, waited for the Fed's 2:15 announcement. Of course, the PPT is not going to allow for a selloff from a Fed announcement so they had a lot of money ready to plow the indices higher. Twenty minutes of buying and the Dow was up 75 points. 20% of the entire day's trading volume of the DIA struck in the 10 minutes immediately following the Fed announcement. Then traders lost their enthusiasm and the indices faded to even on the day. It could have been worse or even, egad - negative, if not for another almost 20% of the entire day's trading volume buy frenzy in the final 10 minutes. I'll get to the announcement in a minute.
Wednesday saw very mild selling continue. Thursday was a nice fornicating Fed day. The casino started lower and a strong buy program brought it back. It went sideways in the middle of the day and rolled over only to be goosed in the final moments with heavy volume.
But then Friday came. We got the good news that durable goods orders were down 1.3%. Yeah! The Dow went up 197 points on the good news. 'What good news', you say? Well, if you take away transport orders, durable goods were up 2%. Let's look at the real numbers. Durable goods orders were worth $191 billion dollars. Transportation equipment orders were worth $46 billion dollars. So, if we exclude 24% of the orders because that 24% went down, we can say that orders were actually up! Yeah! Did I mention the Dow was up 197 points on the good news? Oh yeah, there were a over 450,000 new applicants for unemployment and home sales and home starts were still hovering at all time lows and blah, blah, blah. If you take away the 450,000 new unemployment benefit seekers, the economy would really be adding jobs! The PPT don't need no stinkin' economy. They have money and a printing press and they have seized control of the NYSE. Rally boys, rally!!!
Let's go back to the biggest lie ever told. The Fed left the Fed Funds rate at zero but said that deflation was likely to be our problem in the future. Yeah, I know. You need a few moments to collect yourself after reading that. I thought Cain told God a whopper when he was asked about his brother, Abel. But boy, I think this one even tops lying in God's face. Deflation. Really. Bernanke said so. My garbage service is up, my satellite TV is up, I don't have health insurance because it has gone up too much, stamps are going up, gas is up, groceries go up every time I go to the store, restaurants all went up, and this fornicating idiot wants us to believe there is deflation about? A friend of mine operates a portable oil change company and he just told me his costs were up 40%. An exterminator guy just came to my house and he wants $895 bucks to spray for termites that we don't have. My rent is up, my phone is up, it costs $2 dollars for one bell pepper and the Fed is worried about deflation????
Let's look at reality. Gold and silver are rallying like the Fed just announced another $10 trillion bailout. Treasury notes have been trying to sell off. The dollar looks poised to complete a bearish head and shoulders and fall to who knows where. Why? Because all this stuff happens when inflation is turning to hyper inflation. Deflation is fed to the dopes on the teevee and the media so the Fed can continue their quantitative easing. What's that? They are buying Treasury notes. If there was deflation at hand, Treasuries would be appreciating on their own and driving yields lower. If there was deflation at hand, precious metals wouldn't be marching higher every day! If there was deflation at hand, I wouldn't get so depressed going to the grocery store every week. To be an outright idiot is one thing. But to be a conniving bald-faced liar is another altogether. And this is the man running our country. God help us all. Friends, the time has come to demand change. No, I'm not talking about that ridiculous Bush clone that sleeps in the White House. The American people need to demand either Bernanke yield to a drug test or he should step down immediately. Better, disband the Fed so we can truly find a real economy.
Here is the chart of the DIA for the past week. Note the fornicating fed pattern as knowledge of anything is no longer important. Like standing in front of a slot machine, it is the timing that is important now. We just want to be present in those precious 10-minute burst buying bars that the PPT orchestrates.
DIA - 9/20/10 - 9/24/10 intraday 10-minute bars
Chart courtesy StockCharts.com