friday brainstorming

1. Yesterdays birthday present for Mr President was one of the sharpest sell offs – and we are back into the 07/08 mode. We dropped sharply below weekly Bolls which only did not correct to the upside thereafter once , in Oct 2008 when all hell broke lose as Lehman was manipulated  into bankruptcy ( Lehman people were the core of that event but the same is true for all Wallstreet and Bernanke could have kept that dead man walking on the lifeline as well). Today a snap back rally is very likely as the wil most likely manipulate NFP numbers higher. That will not last longer than 24H  and as long as QE3 does not get announced the market will drop more. But wave 3 seems to be close to an end as 1180 SPX is almost reached. Only that parallel Europe is sliding into a bigger distress parallel and the whole charade of the scam and ponzi scheme comes to the daylight as we are close to slipping officially into recession again. In real term we never were out of the depression but the camouflage and the ‘integrity of the mass media’ helped to cover it up with plenty of easy money but as soon as QE2 stopped as expected the markets could not hold up anymore.

Expect a volatile move today with the bias to the upside as they can not afford to let the market spin out of control with yesterdays ANGST overclouding. From an astrological point of view next week will also be extremely volatile and dangerous on top for military conflicts.

From 1180 SPX expect a bounce of 30-40 points without QE3 , which is rather due next week I suspect but central banks are losing control and those effect will fade in their magnitude like with a drug addict – this time we will not see a major upside campaign. The tide has turned a bear market has just started since as discussed earlier the true value for the SPX even with the phony 100 Dollar earnings assumption is best case 800 (8/times earnings) but with even lower earnings going forward that number might easily be rather lower.

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~ by behindthematrix on August 5, 2011.

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