Remember when you were a little child and had to walk past a graveyard or cemetery on the way home? The process was rather unnerving particularly if it was in the evening. So along comes the advice of your seniors..."Just strike up a pleasant tune and whistle it out loud. It will perk you up and chase away any fears".
I got the distinct impression that this is what occurred in today's S&P 500 futures pit. Oh I know what the "perma bulls" will tell us. "Equity prices had gotten too cheap. The economy is not as bad as the stock markets are indicating" and so on and so on. But the "whistling tune" I loved the best today was this one:
"European leaders are going to go at their problems by employing a 'GROWTH' strategy and are moving away from 'AUSTERITY'.
NOTE: INSERT MELODY HERE TO AID WOULD-BE WHISTLERS AS THE AIR RUSHES PAST THEIR LIPS".
Why not just cut the crap and state the obvious - these short-sighted politicians and monetary officials will do anything to prevent themselves from getting booted out of office by a public ADDICTED TO GOVERNMENT SPENDING. Look at what happened to Sarkozy. He was replaced by a Socialist who LOVES DEBT AND MORE TAXES to apparently try to fund it all.
Hard choices?! Forgeddabout it! That's for the poor chump stupid enough to think that the public will give him a chance to do so.
Either way, the result of this "pursuit of growth" instead of austerity was the supposed reason that we had an enormous short squeeze in the US equity markets today. My guess is that the powers that be made sure that they had their "pals" bid the market high enough to trip the algos into buying and then sat back and laughed at what they had managed to pull off once again.
With the FACEBOOK IPO smell still souring the air, one has to wonder how much more contempt these elites have for the general public whom they just led to the slaughter touting that piece of junk stock. Didn't matter however - today was "All these European problems are so overblown Dude - Day".
The timing of the big BULLISH OUTSIDE REVERSAL DAY just happened to coincide with a market approaching the critical 50% Fibonacci Retracement Level. That level also happens to not be very far away from the 200 day moving average. Surprise? I doubt that. Now we watch and wait to see how much, if any, staying power, today's contrived equity rally is going to have.
"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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