tuesday brainstorming

1. Markets are clearly in crash mode and since all supports were wiped out yesterday plus during the night session the panic mode is very obvious also for the FED, which proves that their market manipulation of the last 3 years has not any substance. The pressure is so high that today a QE3 announcement is a sure thing the question is rather will the details of their strategy be big and strong enough to turn the tide. Well  a brief  short squeeze is clearly in the cards as we have seen already this morning. Only that the technical picture is so strong bearish that over the next weeks and months we will clearly go lower and a retest of March 2009 has become an odd one can bet on. Tonight some sort of bailout action will come and create plenty of volatility but a snap back rally is the most likely outcome – magnitude depends on the substance of QE3 but to turn the markets for weeks it got to be a tril at least, which is very dangerous because the FED will load up on paper which are future losses and put the credit rating on risk for much more downgrades.

This can spin out of control very easily as the moronic wallstreet gang was doing the praise for the bullmarket and people are caught on the wrong food as fund managers are fully invested because of such stupid myths like stocks were cheap. Paulson and Buffett are among the worst performers with heavy financial exposure and Buffett has 10 of billions at stake with his short puts on the SPX. Actually he must have a horror year with even the regular insurance business at a 3 times payout mode  compared to last years even his cash flow machine is in trouble.

Kind of funny was the bond rally after a downgrade due to the crash in stocks and the fact that from the 400 bil. debt ceiling raise only 140 are left after a week and I think they did not pay back all the bil.they borrowed from pension funds yet.


~ by behindthematrix on August 9, 2011.

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