Murphys_Law
Member
Hello everyone,
I am a mostly a silent observer and have benefitted greatly from the advice and comments of all members. Despite beng fully invested in the S Fund for a few months, I find the recent market run up to be incredulous. So, with that said, I offer my opinion on today's market.
Institutional investors are NOT buyers here. They are being pulled in by the Fed and the Fed's bank partners. This makes the condition of the market very unsafe. http://www.stocktiming.com/LiquidityResearch.htm
This guy charts institutional activity. He has the stats and the result is "its the Fed buying the market." This presents several problems. The Fed has only been buying a few companies. That is why new highs are 50% below the April levels, last time the market topped. If and WHEN the sell-off comes, there will not be enough issues/stocks with support to stem the tide. We are probably going to see a massive crash.
The evidence that institutions are on a "hair trigger" sell signal was given over the last two weeks when the cloud computing companies had their own mini flash crash. Selling comes so hard, so fast. Yet, the Fed and SEC have done nothing to limit flash trading.
I believe the Fed will allow a crash (and/or is actually prepping the set-up for a crash.) There is $1 trillion of stimuli and quantitative easing in the market. A crash would "re-distribute" that cash back to the Fed banks, GS, BAC, JPM, etc. Yes, they would steal public money from the market it was meant to support. The goal is to keep the current bankers in power and keep the banks liquid enough to maintain the status quo. With continuing real estate declines and poor employment, a crash will buy the banks time. It is widely known that Goldman and friends trade the market ahead of the interests of the economy, the public and the country. They admit it.
Sadly, we can't time the end of this blow off or when the reality of "over-valuation" outweighs the Fed's obvious manipulation. This market is not safe by any means. It is possible we go up into year end. I doubt it. I expect a fast adjustment first to 1110 - 1090 S&P, then possibly new highs in November.
I am a mostly a silent observer and have benefitted greatly from the advice and comments of all members. Despite beng fully invested in the S Fund for a few months, I find the recent market run up to be incredulous. So, with that said, I offer my opinion on today's market.
Institutional investors are NOT buyers here. They are being pulled in by the Fed and the Fed's bank partners. This makes the condition of the market very unsafe. http://www.stocktiming.com/LiquidityResearch.htm
This guy charts institutional activity. He has the stats and the result is "its the Fed buying the market." This presents several problems. The Fed has only been buying a few companies. That is why new highs are 50% below the April levels, last time the market topped. If and WHEN the sell-off comes, there will not be enough issues/stocks with support to stem the tide. We are probably going to see a massive crash.
The evidence that institutions are on a "hair trigger" sell signal was given over the last two weeks when the cloud computing companies had their own mini flash crash. Selling comes so hard, so fast. Yet, the Fed and SEC have done nothing to limit flash trading.
I believe the Fed will allow a crash (and/or is actually prepping the set-up for a crash.) There is $1 trillion of stimuli and quantitative easing in the market. A crash would "re-distribute" that cash back to the Fed banks, GS, BAC, JPM, etc. Yes, they would steal public money from the market it was meant to support. The goal is to keep the current bankers in power and keep the banks liquid enough to maintain the status quo. With continuing real estate declines and poor employment, a crash will buy the banks time. It is widely known that Goldman and friends trade the market ahead of the interests of the economy, the public and the country. They admit it.
Sadly, we can't time the end of this blow off or when the reality of "over-valuation" outweighs the Fed's obvious manipulation. This market is not safe by any means. It is possible we go up into year end. I doubt it. I expect a fast adjustment first to 1110 - 1090 S&P, then possibly new highs in November.
Don't try this at home.:suspicious:
