"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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A Little Dab will Do Ya
Years ago there was a men's hair care product (okay - let's call it what it really was and do away with the euphemisms - GREASE) by the name of Brylcreem. Boys and men slathered this stuff between the palms of their hands and then rubbed it into their hair. The result was that you could make that hair so stiff it would stay there all day no matter rain, fog, or gloom of night. Problem hair? No problem! Grease it into obedience!
In watching the price action in the S&P 500 this morning I am reminded of that commercial (Yeah I know - my brain thinks in weird terms!). The index had the audacity to become like a problem hair - uncooperative, unruly and generally out of place in the minds of the monetary authorities idea of what is supposed to be a beautiful head of hair.
So what to do about this? Why send the boyz out to the microphone and "grease" this thing back into compliance.
Note the price chart and you will see what I am talking about. For the first time this year the S&P had fallen BELOW the techically significant 50 day moving average. That is a gigantic "NO-NO", as it signifies a market moving toward a bearish posture.
Why, miracle of miracles, out trots New York Fed President Dudley with his comments fanning the hopes of those wishing for more QE, and "Voila!", back goes the S&P 500 through the 50 day moving average! Problem solved; hair greased back into place; now let's go play Dodge Ball!
don't you know it, DAN.
ReplyDeletetoday's tube is marked 'risk on'
In addition to the 50DMA, what other indicators do our market controllers use? What are the more esoteric ones that they use? Do they just like fundamentals and TA, or do they also employ market cycles (other than the presidential cycle: one can hardly doubt that _this_ one is used... )?
ReplyDeleteSo let's get this right. No QE -> GOld drops 100 points. QE back on, gold up 15 points, underperforming the equity index to boot.
ReplyDeleteRemind me again how even people intimately knowledgable about gold can deny the existence of the gold cartel? Talk about sheeple
I happen to believe that it is all rigged, but...they cant keep putting there finger in the dike. The pressure is building everywhere. Alot of people are out of work, and the king just keeps marching on like it is 1968. It does not work anymore, he is wrong. Americans need to find a way out of this, but like a very popular commentator on Fox News (No longer employed with Fox) used to say "the political fix is not forthcoming". What is is going to rock us all. Gold and the miners will prevail against all odds, and the MSM, and the Bullion Banks. Why? When Ms. Blythe starts making appearances, it is getting closer. Tic, toc. I hate to admit it but Dan, your humor cracks me up. I must be part of the "old school" who understands. All the grease and appearances of all that have come and will come, will not change the path we are on. It is done.
ReplyDeleteGreat comparison Dan, now lets play dodge ball, that is a laugh. thanks!!
ReplyDeleteGreat information you have here. Thanks for sharing.
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