If you would like to watch Rick Santelli at his best, check out this segment of his show on CNBC where he describes exactly how he feels about this idiocy with the "Taper Caper".
I can tell you as a long time professional trader, that he is exactly dead on target. Once upon a time, those of us who make our living in the market and not off the market, attempted to master the fundamentals of those markets in which we traded. We prided ourselves on our understanding of the factors determining supply and demand, seasonal trends and tendencies, value pricing, etc. I can say that more often than not, it seems as if none of that matters at all. All that does matter is whether or not Uncle Ben will keep the money spigots wide open or close them off.
Trading used to be a business which required hard work, long hours of meticulous research and devotion to ones craft if one was to be successful. Not any more! Now all that is required is ferreting out the inner workings of Mr. Bernanke's mind and determining whether or not he is in a generous mood when it comes to supplying punch to the multitude of bowls laid out in front of him on Wall Street.
I can only say that if this is what the greatest nation on the face of the earth's financial market system has been reduced to, kiss us goodbye, because we are going the way of ancient Rome faster than I had even contemplated.
Enjoy Rick's rant! It is a classic....
http://video.cnbc.com/gallery/?video=3000182232&play=1
it is a shame what you and Santelli say, but also the truth, or to put it bluntly, "we are all f d, Steve and that in his own words is what Marc Faber e-mailed me 5 yrs ago. plv-gcv is trying to break out, which says, car production is picking up, (no), mining unrest is about to break out, (?), or inflation is gaining the upper hand, as platinum is often a leading bell weather for the metals; stay tuned sports fans because we ain't going sideways; swb in blistering sparks, nv
ReplyDeleteDan,
ReplyDeleteI am so sorry to see that you finally... agree with me.
I remember a comment I made many months ago here and where I said: T.A, Fundamentals, charts and all technical tools are obsolete because the market is so manipulated that we can/should not use them anymore. Dan, I also remember your reply to me...
Both Rick and you agree... This is total madness.
I would add that what is happening at the FED (Bernanke leaving soon, Elizabeth Duke's resignation, opposite views of where the US economy is going from FED's members...) is the tip of the iceberg. What is going on under the surface is what we have to be ready for... And what the Obama's administration is doing (all these "executive orders") could be the signal that plans have been drawn up for what is coming.
Honestly I feel sorry for you having to deal with all this madness in the stock market, but I also command you for all the time and energy you spend educating us.
A big THANK YOU to you Dan.
Hi Dan, I totally agree with you. But, the other side of this is, we all failed to simply follow market price action for last 4 years and make lot of money, instead of trying to understand
ReplyDeletewhy market is doing this or doubting the market intention and denying the reality that market is going up. As traders, our skill should be to follow market price action and make money from the market action. Our skill is not to understand why market is doing because nobody knows why. As long you you can follow the market action and make money, you are there as a trader. This is where we all failed as traders.
Student,
ReplyDeleteThere is NO MARKET!! That is the point. So if you learn there is no market what are you a student of? TA for the sake of TA? Sounds way to weird for me. It is like the Matrix Market. Do as I say and you will not get hurt. If Traders attempt to short this market and get ahead of Bernanke's curve then he machine guns them into submission. Pitiful and certainly not a market. I am staying out of a market like this except to counter it in short spurts against the will of the Bernanke. I will not submit and get ambushed when the great god Bernanke decides to take every Stock long out.
The timing will of course coincide with a great war, a takeover of all markets, Money Market Funds including private 401K's, IRA's, Insurance Annuities, Bank accounts, capital controls. Executive order to Save America. If this starts to even occur through some legislation by congress through the SEC, then BANK RUN. I am out to the woods with shotguns and Venison hunting. Any student of the market will see this coming, and it does seem more and more probable every day. Probably some great war where Obama mimicks JFK and says "ask not what your country can do for you, rather, what we can steal from you for your country. I am sick of this. Way sick of the Fed controlled markets. Matrix markets. Come on 10 year, shoot to the moon and break the FED.
ReplyDeleteNo need to fuss re: market manipulations. Just be aware of them + trade accordingly.
ReplyDeleteActually, since MARKET is like NATURE or WEATHER no matter what the gov't / Fed do to
indirectly to manipulate all they do is set up a huge house of cards that will eventually fall
and hands us huge opportunity to profit / plunder from their blunders.
If one used Central Bankers around the world buying gold in 2012 + early 2013, as Swiss + many others did, as the ultimate Contrarian Indicator one would have done very well > Oct 2012 to present.
Reframe it. The gov't who takes your taxes + inadvertently hands it back to you on a platter. Suggest readers to read Armstrong Economics. Very informative site + blogs.
Just dress accordingly for the weather to avoid getting wet , frozen, etc.
Use CB's attempted manipulations, which only delays the inevitable temporarily and actually
set up extreme conditions for great trades.
Then use the profits to help neighbours who will be left devastated once the foreigners + all citizens eventually get to the inevitable point of recognition that gov't cannot be trusted
at all + stop funding the gov't by not buying gov't debt instruments and social programs
crumble.
Nothing here on earth goes on forever. History is full of examples of rise + demise of
city states, nations and empires due to own mismanagement of finances. It's all cyclical.
Well said Learner but patience is a virtue I am short of especially when they (CB's,Bullion Banks, Congress,CFTC,Kings) get away with manipulation for years on end and no prosecution while using media to distract, dismay, and destroy.
DeleteStockman tells the truth we are all going to face. God help us. The sooner we face it the better.
ReplyDeletehttp://www.zerohedge.com/news/2013-07-11/david-stockman-born-again-jobs-scam
The amount of negative articles being spewed forth by Zero Hedge with articles by Stockman, etc. only seem to accelerate the desire of many hedge funds to short the stock market in an attempt to pick a top.
ReplyDeleteAnd the more guys who read Zero Hedge and absorb all that negativity seems to fuel even more bearishness among many traders.
Perhaps that is why the market is really starting to go parabolic, it is trying to shake off the excessive bearishness being fueled by the myriad number of websites who post spectacular headlines warning of a massive system collapse.
And what happened to that guy who was advertising "Critical Warning No. 6"? He must have already collected his fees and vanished. Probably sitting on a boat somewhere in the Caribbean with a high end escort laughing and drinking a Jack Daniels.
I'm just waiting for the day when Santelli really loses it and that vein that bulges out of his temple explodes.
Hey Mark, here is some reporting to read. You might want to stop listening to your bosses and start doing a little independent research. Parrots from manipulators is difficult to listen to on an independent thinking blog. Net Interest Margin at JPM plummeting. Mortgage Refinances and profits plummeting, I guess the rest of the Regional Banks will be shielded from this type of action in a "rising rate market"????
Deletehttp://www.zerohedge.com/news/2013-07-12/jpm-beats-thanks-14-billion-reserve-release-net-interest-margin-drops-record-low
DeleteSorry forgot to paste. I know you hate zero hedge and anything that is factual. If it was not for the new accounting rules to hide losses in this new mark to market day and age allowing banks to somehow put magic asset values on their balance sheets the banks would have blown up years ago.
http://realityinvestment.blogspot.com/2012/10/qe-mania-where-is-all-excess-liquadity.html?m=1
ReplyDeleteGreat interview.
ReplyDeleteSpeaks a lot of the situation : what despair, what rage indeed, behind Rick's sense of humour.
GEAB are right, even though I think they are too optimistic about Europe.
But about US, UK, Japan...the "world before", they are worth reading.
http://www.leap2020.eu/English_r25.html
Contrary to Hubert,
I'd just separate fundamentals from T.A and say that :
- long-term, fundamentals are still as important, because the day of reckoning will come, because noone can manipulate a market forever, noone even the Fed. That's why I bought gold on the long-term and I'm keeping it.
- short-term, middle-term, fundamentals don't matter anymore, only Taper or Not Taper, that is the question matters. Traders just have to enjoy the slings and arrows of outrageous fortune, or follow Hamlet's fate by following fundamentals and try to reason out the market. But then it means that T.A is the only tool left, and is even more critical than before.
Thanks to all for exchanging your points of views, that's why I love this blog.
Mr Bo Polny, those that are familiar with him, is calling a bottom (again!). link attached below;
ReplyDeletehttp://www.jsmineset.com/wp-content/uploads/2013/07/clip_image002_thumb8.jpg
If his call is wrong, just remember- it's because of manipulation, hehe ;-P
Love Rick. I do think eventually inflation picks up. It could be years, decades or more. What's eventually going to be the unravelling of this whole mess is class warfare and inflation - the 76% of Americans that live paycheck to paycheck that can't take the squeeze of inflation versus those with inflatable assets that can.
ReplyDeleteImagine an Arab spring in the U.S. It could get fugly.
Bo Polny, are you kidding? What happened to Lars Lindstrom? How about Martin Armstrong? Man, they seem to keep dragging out one expert after another calling bottoms.
ReplyDeleteFunny how not one of these guys warned of the coming massive bear market in gold stocks when the HUI peaked out in 2011.
It was always "buy, buy, buy" all the way down.
Now, if they had recommended "buy, buy, buy" on consumer discretionary stocks the last 3 years, they would all be Wall St. rock stars featured regularly on CNBC and Bloomberg.
Wow, what a Circus we live in. One Carnival Barker after the next in the gold market.
@Mark. Not sure that Armstrong was a bull--He's been warning of gold going down for some time. Nenner had told investors to get out of gold at $1,900...
DeleteTo quote from "The Princess Bride:" "Life is pain, anyone who says different is trying to sell you something." KWN has a lot of carnival barkers and hawkers of gold products, but some interesting commentary as well (Obviously Trader Dan), Richard Russell "warned" that the Dow was still flashing buy signals at the beginning of 2013, Louise Yamada, and was it Jeffrey Saut who issued a strong warning at $1,900? But there is a lot of verkakte commentary too.
Onwards. What is fascinating now is that HUI continues to be performing horribly seems to be in the process of bottoming (Comex reserve depletion is interesting, right?). Obviously there are reasons-Miners that made money @$1,200 on the way up are losing money at the same mark now (NEM, GG, AUY all were cash flow positive in FY2009-2011). But if HUI is a proxy for speculative interest, it seems that specs are still way negative and not letting up. If gold were to continue to stabilize/show a bottom, in spite of short specs hang on, things could get really interesting.
That's just having fun while I watch the tape.
On another note, FDX lowered guidance earlier this year. UPS is tanking on lowered guidance. I had opined a few months ago that the Transports remain a good indicator of the economy / important for Dow theory. Even in a service economy, transports bring Amazon, Zappos, etc. packages to the door, ship Bakken crude via rail, fly iPods fthrough Ted Stevens airport (2nd busiest cargo hub in country, 5th largest in world). etc. At some point things fall apart. The same mainstream media that is touting the ecstatic part time employment in the US will find the same data to be bearish if markets turn red. There is already the occasional odd headline that JPM might not be in such great shape if rates rise (for the wrong reason-they state mortgage origination, when what will really suck is the value of their fortress assets declining).
all these Hoosier PM perma bulls are afflicted with the same malady; we call it "humming bird brains being overloaded by alligator mouths"; steve in sparks
ReplyDelete