The Federal Reserve


#241

Its called a a Bearish Divergence between price and RSI…i.e spot the 3 peaks in Price(SPX) vs the 3 Lower peaks in the RSI.
So we have rising prices but lower peaks in RSI, bearish divergence…

Very Rare, during the good old days when technicals actually worked they had a high probability of being right…

Simple play here, expect a rally to 1105 ish +/- 3->4 pts.

Place trade at this level if signals confirm, put stop @ highs or 2-3 pts above old highs depending on your style and risk tolerance.


#242

Faugh wrote:

That’s the divergence I was pointing out but didn’t mention it,as a seasoned trader like yourself would no doubt have spotted it straight away :wink:

The point you make about TA working in the past and not now is definitely relevant,I don’t put any weight on such signals now since the market is being driven by so many different forces that it usually fails to do what people are expecting,it is now being driven higher by people seeking a haven from a dying currency -that means even fundamentals have gone out the window as well,they don’t care about traditional valuation metrics,they just know in a hyperinflationary environment we are about to enter,stocks will protect them,so earnings multiples,PE ratio’s,price to book etc forget it.The market is now in the final stages( I think) of short covering -there can’t possibly be a single short left can there?And also by the FED my favourite dealer of last resort.

I think the market has reached a top of sorts here,the E-mini sp500 may go to 1166/1175 from a pattern breakout but I doubt it,I am personally watching the EUR/USD as I think this is where the real turning point is to be found at 1.500,and currently is falling away,as is the sp500,there is about to be a big dollar based market correction I think and gold bugs may get a bad kick in the cajones,but what do I know?

It all depends on Benny,Goldmine Sucks and the printing press at the end of the day doesn’t it?

Prof.


#243

I had to laugh when I read this one,I mean the protests over the first set of bailouts were so violent and widespread weren’t they?Many politicians were told by a fiercely angry electorate not to bail out the banks on both sides of the pond and what happened,nothing,they ignored their voters and voted en masse to enact the biggest ever theft instigated in the history of the planet.So why would the banks and their corrupt,bought and paid for politicians have any regard for public opinion second,third fourth,fifth…time round?

The bankers will certainly think twice about going back for more?What? What what protest have there been in Washington,London,Dublin(sorry Pinsters,the only protests recognised by governments are national strikes and full blown riots in my opinion-anything else is pointless),Paris,Berlin?None,so just expect the next round of bailouts when you see them.

The too big to fail banks have got bigger by mergers -often at their own governments request thus creating an even bigger “too big to fail” monsters,their losses have been moved off balance sheet in a blatantly fraudulent accountancy sleight of hand thus allowing them to declare huge bogus profits on their taxpayer subsidised trading activities,their losses in many cases have been transferred to the taxpayer and further losses will follow the same route.Many of these banks are now nothing more than bankrupt Hedge Funds fraudulently trading as banks with the express permission of their regulators and governments,who allow them to continue trading whilst insolvent and transfer thier gambling losses onto current taxpayers and future generations of taxpayers in order to maintain this illusion of solvency and profitability.

Read it and weep…

business.timesonline.co.uk/tol/business/economics/article6928147.ece


#244

i have to laugh when the IMF says democracy is at risk. this from an institution that overrides the wishes of democratic governments all over the world, They are worried people might wake up and assert their democratic rights. but given the lame response to Namas, Tarps etc i dont think the IMF has anything to worry about XX


#245

Brilliant article,covers everything:

marketwatch.com/story/lets-nail-wall-street-with-a-racketerring-charge?pagenumber=2


And also:

marketwatch.com/story/15-signs-wall-street-pathology-is-spreading-2009-11-24?pagenumber=1


#246

You are not a Professori for nothing. You have taken the time to given us a ‘brilliant insight’ into what is happening all around us. We in Ireland have always looked on America as ‘our god’ but they are now indeed ‘fallen angels’ and they may bring the rest of us down with them. We are luckey indeed to be Europeans and to have the Bundesbank to rescue us and Jean Claude Trichet to guide us. Our future lies with the Germans and the Chineese. WE must learn more Chineese and German to bring ourselves forward into the New Future of better understanding. The Americans got carried away with their ideas of supremacy. They think they are the Super Gods of the world. Their Iraqe and Afganistan wars are attrocities of unbelievable proportions. They have become war criminals. They should ‘get out fast’ before they disgrace us all.


#247

Sieg Heil Chairman Mao!


#248

Here Is Why The Dollar Is Now Effectively Worthless -> zerohedge.com/article/here-w … -worthless

zerohedge.com/sites/default/ … 20Base.jpg


#249

Marc Faber says there will be a huge nflation,phoney war against an imaginary enemy,and then the inevitable bust:

globaleconomicanalysis.blogspot.com/2009/11/marc-faber-sees-war-against-invented.html


#250

Mary, Investment World changes on a dime… Those who are right today are wrong tomorrow from experience…

Imagine a World where $ is king and Gold is King for a few years…($ is fxcked long term anyway)

Euro is in big trouble as a currency and those (banks) Germans are not the powerhouses everyone would like them to think they are…

$ Debt Repayment will fxck Euro right up. …

When is the Question?

And I dont have a fucxing clue.

Add: Rumours about Greece being worse than Ireland… Rubbish…We are worse…

Roll on the Devaluation through the new currency…


#251

well its quite possible to see the US invading Venezuela, cuba and iran in the next few months/years, the media are already prepping the masses

roll on the 101st Airborne in Havana 8DD


#252

thedailycrux.com/content/345 … sberry/eml

Very good read, there are so many triggers to the apocalyptic future, both domestic and international, Sovereign Default seems to be the most likely Bogeyman coming down the tracks, maybe Dubai next week or America next year who knows.Get your beans while their cheap!


#253

Its funny how, refusing to pay on debt causes the mkt to roll over a bit…

About $60Billion required for CDS’s…Dollar Shortage, now wait til the Europeans start joining in… Espicially the Germans with their supposedly prudent lending…

The on thing that is easy is to know that the Credit Crisis is far from over, but the hard thing is the WHEN?

I am sure CNBC will have the uusal pumpers out tomorrow trying to persuade the last few Retail to enter the mkt…

Enough with The BS, the last few weeks we have had plenty of warnings in Gold, Bonds, Ted Spreads, CDS Spreads, currencies and my favourite $ index spikes to let us know that we will be soon moving to the main Course…

This is where CASH will be King because it will be vanishing off Balance Sheets…


#254

be afraid, be very afraid…


#255

AS the US economy hurtles towards the cliffs edge with the senate asleep at the wheel,finally,some are waking up from their slumbers,unfortunately for America and the rest of the world it is just far too late.

Replacing Geithner?With what?Another Wall St stooge?THey ned to close the Fed down completely,Geithner will only be replaced with another puppet.

huffingtonpost.com/2009/11/18/rep-defazio-fire-timmy-ge_n_363093.html


#256

Fed’s ZIRP to cause asset bubbles:

No:
ft.com/cms/s/0/98e7c192-cd5f … abdc0.html

Yes:
futurefastforward.com/images/sto … rmless.pdf (PDF - Adobe Acrobat required)


#257

Why is the Fed resisting attempts to audit it?Here’s a couple of reasons:


#258

A few posts back I commented on the rising swell of opinion to remove Geithner and the likely background of his replacement,now there are stories doing the rounds that it might be Jamie Dimon,the boss of JPMorgan.

He says he is looking forward to "serving his country"

Words fail me.

nypost.com/p/news/business/polishing_dimon_IKfyRK8PArjjlMYflWAvDK


#259

The Federal Reserve and the paranoid style in American Politics

finfacts.ie/irishfinancenews … 8500.shtml

The United States had no central bank between 1836 and 1913 and last week, Republican Congressman Ron Paul of Texas, who advocates the abolition of the Federal Reserve and the return to an American economy reminiscent of the last four decades of the nineteenth century - - falling prices, a link to gold and a much reduced role for government - - won support in Congress for a new system of oversight of the Fed.

Meanwhile, multi-millionaire right-wing Fox News broadcaster, Glenn Beck, held a campaign-style rally in Florida to coincide with the publication of a new book. Evidence of the paranoid style in American politics has been growing since January 20, 2009 when Barack Obama became president and modern day versions of 1930’s demagogues like Huey Long of Louisiana and the Irish-American anti-semitic radio priest Father Charles Coughlin, are ready to reap the fields of uncertainty and fear.


#260

What a bizarre paragraph,it’s as if the author can’t quite bring themselves to denounce the Fed and the current corrupt system,whereby Washington is said and led by the Fed,the economy and government spending also being under complete Fed control(the government and the treasury having being filled with ex Wall St. bankers),

Saying in the same sentence that the continuation of the corrupt political system along with a central bank that has its independance compromised would be a bad thing?Implying they are inextricably linked in some way,and without any justification,argument or evidence to back it up!

How could wresting control over money issuance and economic policy from an unelected private cartel of anonymous bankers who have destroyed the value of the dollar and the economy by inflating the money supply and creating speculative bubble after speculative bubble, be any worse than allowing them to continue their racketeering and increasing grip they already have over their corrupt political puppett politicians?

I will finish with the haunting words of Woodrow Wilson, who realised too late the terrible mistake he had made in signing into law the Federal Reserve Act of 1913:

" **“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is now controlled by its system of credit.We are no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.”

- Woodrow Wilson 1919**"