The market action of the last two days should tell you all you need to know about this market. I would like to call it broken but that would be a compliment as that would imply that it could be fixed. This market is beyond repair. It has become a giant sham and a farce. Yes, I realize these are harsh words but they are true.
Lets look at the last 2 days shall we? We start the week on Monday in the dumper only to rally well off those lows as the day wore on. Then Tuesday, we start the day on nirvana only to slide well off those highs as the day wore on. Tit for tat. Today we get Amazon news that proves volume doesn't make profits yet we rally big on news of Greece. How about tomorrow we decline on Portugal, Spain and Italy.
Did you see it coming. Of course the brilliant minds of CNBC's Fast Money did as they always do but did you? I realize the brilliant money crowd of Fast Money on CNBC have it all figured out, that is if you believe their horseshit. Kinda like the casino gambler who never loses. Yup, no losers over in Vegas, only winners. Not so lucky for the rest of us.
The Baltic Dry Index is threatening its lows from the post Lehman decline for those unaware yet the pundits dismiss this as a non event. Do you begin to smell a rat? Or do you simply take it a face value, ignore a respected and long standing indicator flashing warning and buy stocks because some shill on CNBC told you he talked to his BIG clients and they're buying or they like this market? Or do you ask yourself, what the f#$% is going on here?
Without question I believe these are free markets no longer. There is no such thing as open price discovery. I believe we have an amalgamation of - too big to fail, privy to all the information they need from the Fed, client front running financial whorehouses like JP Morgan, Goldman Sachs, et al. Then we have the high frequency arms of those same firms among many others- swapping back and forth the same 500 share lot thousands of times per day to each other over and over again with the appearance of liquidity. Then we have the expert network, gnome above the Alps pay to play connected hedge, private equity and venture capital funds playing the pump and dump game. The same game JT Marlin played in the movie Boiler room cept' these boyz have cuff links, went to Princeton and daddy actually approves of what they do, cause he did it, his associates do it and the state senator and congressman does it.
Oh yeah, did I mention those too big to fail, privy to info, client front running whorehouses get all the free money they need from a revolving door Fed and a pass from the SEC who are the same guys you they worked with on Wall St. prior to becoming public serpents.
Volume in this market, no lets call it a facade. Volume in this facade is nothing for the vast majority of the day save for a surge a the open and a massive bout of tape painting at the close. Watch the boobs and boobs in chairs who masquerade as financial journalists make every excuse for the missing volume. This is the new normal, volume will come back when volatility subsides blah, blah, blah. They know nothing of what they speak save for what they are told to regurgitate via the teleprompter. Always remember volume = validity no matter what the boobs tell you.
Others have done yeoman's work on this subject of missing volume which I will not bore you to death with as your eyes will glaze over 8 seconds into the dissertation. Based on this, I firmly believe that if someone wanted to sell a significant position en masse there would be no market for that sale period. I also believe, like has happened in the past, people in the market have been reached out to by the powers that be and have been asked, told and yes threatened to stop selling stock period.
Do you think Raj Rajaratnam name was simply picked out of a hat for an SEC insider trading investigation or do you think he rubbed the wrong cat the wrong way. Again, I have no Ivy league MBA and was born at night, just not last night.
If you read the history books on past markets there is much evidence to this having had occurred. You can dismiss me if you wish but ask yourself this question. Having watched what has transpired over the last 3-4 years, after all the insider dealing, bailouts, lies, and thievery do you really intend to dismiss these possibilities?
What I do know is that I have watched markets trade on a daily basis since 1992 and even this simpleton cannot help but notice an ebb and flow to the markets over time much like a weather pattern. I also know that liars keep lying, thieves keep thieving, and there is never, ever just one cockroach.
This whole situation is one of the very reasons why my posting has been down.
Quite frankly there is little to write about. Sure one can wax poetically about the Facebook IPO or the litany of other social media ventures (according to Wall St. you just have to own) sold to a return starved (hence bonus challenged) institutional equity market. Alas most will end up the like the stimulus propped green companies so many waxed poetically years ago about yet have memory loss today as they go bankrupt. There is very little public participation left in this market as many have taken their ball and gone home.
The shills and their propaganda organ mouthpieces on CNBC try their mightiest on a daily basis to get the common man and woman to return to this market. These same maggots who would sell their daughter or wife into sex slavery for a 7 figure bonus will say and do anything and everything to get you pack in the game of stocks. They need someone to unload to. Please don't listen to them and just like the title says, this is my 2 cents.