Alright, I apologized in my last post and guess what? I am posting just before midnight and I think it may be my last post for this week. I'm sorry but this week has been draining and I really am just sick and tired of all the manipulation that is going on in the marketplace day after day. I like to write after the stock market closes each day but today was just a COMPLETE JOKE!
I am sure that most of you were watching as the stock market was down most of the day, let us call it 100 points down in the DOW aka Humpty Dumpty and the S&P 500 actually cracked below 1500. In the last hour though, the Dow somehow came all the way back to being almost unchanged but then faltered in the final minutes to close down a measly 46 points. At the same time having the S&P close above 1500 @ 1502. That is the INVISIBLE HAND trying to keep the cracks glued together and hope that the human eye doesn't notice. As I write this the Dow futures are up about 40 points, on what, I do not know.
Last night I spoke of Oil and high gas prices and how the high prices have actually been on the news this week. Isn't it funny how OIL has fallen more than $5 from its high in a week? Along with the US Dollar charts this week, I did post a chart on the US TEN YR Note a couple of times. I am not going to put up any charts today, I will do that over the weekend so we can see how the week closes out in the markets.
I bring up the 10 YR because I was noticing a short term bottom in price and top in yield to start out this week. Yesterday the markets got news that the FED is considering pulling back on the QE, printing of money. I will do my best on this one- The Stock Market has been going up on the FEDS QE since 2008, we are now into the fourth phase of QE if you count Operation Twist. I hope you are with me. Most of the pros will tell you this and even the FED has acknowledged that QE has an effect on the stock markets.
If the economy was really improving, think for a minute, why do interest rates have to remain near zero, why do they continue to print $85 billion per month. Keeping it simple, if the FED stops we are up SHITS CREEK. You will have a crash in the stock market like never seen before by all of mankind.
As for interest rates, the Bubble that all the EXPERTS are calling to pop this year. I have said for years that I will make more money in bonds than I ever will trading precious metals. While I have anticipated a huge drop in bond prices, I have been smart to stay out of the Fed's way since the 30 Yr Bond was trading at 125. That is the last time I really traded bonds and I will tell you I lost lots back then but I am grateful to take my losses at 125 in a market that is trading today @144 after being in the 150's this past year. Another great market that the FED has ruined the livelihood of many around the world. How long will they be able to manipulate the BOND markets and keep rates near all time lows?
Here is the problem we face, again keeping it simple, the US has a DEBT of 16.5 TRILLION DOLLARS. If interest rates rise the US will not be able to pay the interest on its growing debt. It is well after midnight and I need to get to sleep so I apologize for not giving exact #'s but just think about this- with the DEBT @ $16.5 TRILLION and growing, think about the difference in interest payments on that amount of money @2% and 5%! Someday market forces will prevail and demand higher interest rates for the amount of risk they are taking. When that day comes, only the market knows but they say YOU CAN'T FIGHT THE FED!
Remember these #'s the next time you here them talking of removing stimulus from the economy. Rick Santelli on CNBC said it best a few weeks ago and it went something like this- It took our regulators and country 20 years to catch onto Bernie Madoff, how long is it going to take the people of this country to catch on to the biggest ponzi scheme that this country has ever seen?
Again, I am stunned at how they have kept a lid on Gold this past year and orchestrated this latest takedown, it really is a shame how manipulated the markets are to keep an illusion alive among the people of the world. I really hope I am opening new eyes and many more before it is too late.
If I make sense, please share this with people you care about or that you feel may have an interest in what I am saying! Thanks again for reading, I think I am done for the week, I'll post more on the markets either Sat or Sunday. Hope to see all then. May the end of the week be kind to you all!
Martin
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