Friday, June 12, 2009

Stock Market Review - 6/12/2009

The 'green shoots' are there because we SAY they're there!!

To be good at sales, you have to be an optimist. You have to be convincing and you have to instill the call to action. You have to get the customer to believe he has to buy the product right now at the current price. Enter the US government. Some people that are good at sales are character-less and mendacious. They will simply say anything to make the customer buy the product. So, we are being sold on the 'green shoot' idea that the economy is showing signs of recovery. Sure, unemployment in the US is pushing 20% and inflation is growing like a fat man at a pizza buffet. Living standards are dropping and houses have turned from a pot of gold to a dungeon. But our government has to pitch the 'recovery' sales job at us least we put our wallets away for good. 'Green shoots' are everywhere. Just this last week, consumer confidence picked up, house sales went up, and so too did car sales. Fewer jobs were lost and fewer people applied for jobless benefits. Of course, all that came from our government who couldn't tell the truth if Jesus wrote it on an index card and had them read it. And it's not just a lie here and there. It is an avalanche of lies day after day after day. For instance, the government has now taken over car manufacturing, banking, insurance, the stock market, the bond market, housing, and pay limits for American workers. They have also limited the number of times that we are allowed to pass gas each day least we contribute to 'global warming'. In case of excess need, we have to get a permission slip from Al Gore. Anyway, their next target is nationalized health care. How do we pay for it? Let's get the rich man and the business owner to pony up. As insane as that idea is, there is more. Obama claimed that health care premiums were drowning the average American since these premiums had 'tripled' in the last ten years. Yes, I agree. Only, they may have increased more than that. Anyway, isn't that inflationary? Isn't Obama the mouth-piece for the same government that claims there is no inflation so they can screw the retired out of a social security cost of living adjustment? Can they not keep up with the lies they tell or do they think we are that stupid that we don't remember the last lie? Well, for a group that can't run Amtrak even with its monopoly status, I don't think health care will get better or cheaper when Bernanke overthrows that sector. I could go on and on about the preposterous lies that the government tells but let's look at the stock market.

The chart is a chart of the Dow ETF, the DIA, the Latin American ETF, ILF, the German ETF, EWG, and the oil ETF, the USO. This is a intraday 5-minute bar chart. Why did I show you an intraday chart of the last trading day of the week? Well, just as the government now wants to govern and regulate how many times we chew our food, they also dominate and manipulate the stock market every minute of every day. This keeps all the stupid people fooled into thinking there is still freedom and real trading going on. Nothing could be further from the truth. On this Friday, June 12, 2009, there were basically two five minute periods where the indices lurched higher. It looked like it was going to be a down day but Bernanke will not allow weakness to set in. He and the PPT are determined to eliminate sellers and short sellers buy buying in micro bursts when the market needs a jolt. Oddly, the last jolt came in the last half hour of trading on Friday. Normally, everyone is headed for the exits and volume dries up. Not anymore. The PPT uses this time to strike when there is no opposition. And, they don't discriminate. When they buy, they throw their money in and buy everything. That's why the Dow goes up equally with Latin America, Germany, Oil, bonds, and Antarctica all with the same amplitude all at the same time. So stop thinking and strategizing. All that matters anymore is whether and when the PPT stokes a rally.

6/12/09 intra-day chart of the DIA, EWG, ILF, and CRX 5-minute bars
Chart courtesy

Look at this next chart. It is a weekly look at the Dow with 30-minute bars. Notice that every day this week, the Dow had huge volume in the last half hour of the day. What does this tell us? Bernanke is not an early riser and he doesn't get to work until after lunch. It also tells us that the stock market has become more rigged than a WWE title match.

Dow 1 week 6/12/09 30-minute bars.
Chart courtesy StockCharts.

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