AuthorTopic: Just Some Thoughts on Today's Market Action  (Read 267 times)

Offline Eddie

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Just Some Thoughts on Today's Market Action
« on: March 02, 2017, 05:55:59 PM »
Today is one of those days that make me remember why I stopped trading stocks, and actually owned no stocks at all for about six years.

Everything today is smoke and mirrors. Algos and manips. Central bank interventions and market makers in commodities pushing futures prices up and down at will. Running the stops.

Today, hawkish talk (just talk, but when the Fed talks, markets respond) from various talking heads at the Federal Reserve drove the dollar back up. Odds are now considered very high for a rate hike in a couple of weeks. At this point any serious rise in interest rates will make the YUGE 20 trillion dollar national debt unserviceable, and taxes will have to raised on somebody, or it will balloon even more out of control.  If it does that, then interest rates might rise with or without the Fed's blessing, as US debt becomes a bit less desirable, and the big money in Europe, which is rushing out of Euros and into dollars, decides maybe gold is better.

So the Fed's mission is to raise rates....just a little...and then look for an excuse to drop them back down. Theater, basically. Any return to "normal" rates, say 5%, so that old people could live off their bank CD's...is highly unlikely. They are always walking on the edge of a cliff, and someday they'll make one misstep and it will get away from them. It's just a matter of time.

The bullion bankers dropped a notional 2 billion dollar short into the silver futures market at 11:30 am precisely, and drove silver prices down about 70 cents in the space of a couple of minutes. Nobody ever really sells 2 billion dollars worth of physical silver. It's just the paper markets, and when it hits the target, the big banks back up the truck and get ready to ride the elevator back up. Rinse. Repeat.

Somebody ( the PPT? the Fed?) shorted the hell out of the VIX to try to drive up stocks. Maybe because the pigmen were celebrating the Snapchat IPO, which went fairly well, although they didn't manage to drive the broader indices into new territory. The Dow and the S&P actually puked a bit, which I have to assume was unexpected and a little scary to the Masters of the Universe who were planning on doubling their Snap money the first day.

Pot stocks lost another 5% or so, pushing the Potfolio back underwater (2%). Jeff Sessions is poison for pot stocks. I spent the day hoping some reporter would find out what he really promised the Russian ambassador, so Trump would throw him under the bus, but he got proactive and recused himself from investigating the election shenanigans with the Russians ( a non-event as far as I'm concerned, but still stubbornly hanging around). Damage control, and maybe it'll work. I'd like to see him back in Alabama  when the stars fall on it, and hopefully on him too. He's Nancy Reagan in lawyer drag.

The markets, quite frankly, are completely rigged, and you'd have to be a total idiot not to see it. It's 1929 again. Yee-haw.

The stock market looks really poised for a slow crash starting sometime between now and summer and probably turning into a faster crash in October, the favorite crash month. It all comes down to whether Trump actually does a real tax cut for the pigmen, and whether he really can get the Con-gress to appropriate more billions for missiles and nukes and whatever other stupid shit the USMIC wants to buy from Northrop Grumman and Lockheed-Martin, and Raytheon. Whatever they have to sell, apparently. Today he was talking about spending more billions on the Navy, as he hung out in military drag on the Gerald Ford and promised to make America great again by making sure we have the biggest, the best and the most weapons of anybody. Even though we already do have that, instead of healthcare.

This country is sick, and getting sicker by the day. Everything being done by our leaders is bound to make it worse instead of better, and the only saving grace is that the rich are still getting richer, so far.....so it's okay if you're one of the .01%.

The Trump rally is getting long in the tooth. It won't keep going up on fumes much longer, and I'm not sure there is anything real behind the curtain. We'll soon see.

Some Senators have written a letter to Jeff Sessions, asking him to give some real guidelines on what he plans to do regarding states with legal recreational pot. It was started by Warren and Murkowski, but nine of 'em signed it. Putting him on notice that the states made it legal, and they intend to pursue legal regress if Sessions gets pushy. There is a Pot Caucus in the House, rallying in support of changing federal statutes so Jeff won't have to be so worried about states flagrantly allowing their citizens to flout the law. Sooner or later Sessions will shoot himself in the foot, but it might take a while. In the meantime, he's a dangerous asshole with too much power.





« Last Edit: March 02, 2017, 06:48:56 PM by Eddie »
What makes the desert beautiful is that somewhere it hides a well.

 

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