Wow. I was expecting a decline down to these very key support levels, which as you may notice are just about where you would like to see them step in a 'cup and handle' or W bottom. But the wiseguys certainly did not waste any time getting here. Tell me, what happened this week that changed the entire complexion of the equity market, which rose in an almost unstoppable manner from a hard bottom back to challenge the all time highs in a matter of a few weeks? What new wisdom did the trading desks and the algos discern that turned sentiment on a dime from mindless greed to panic and fear? Or was this the usual 'wash and rinse' that one might expect in a market dominated by relatively unregulated behemoths who feel free to shove prices around like a pinball machine, all the better than to consume the public with, my dears? Well, take heart young bulls. IF the market can stop and make a stand within a little leeway to the downside, then it has a good chance of doing this all over again and providing the one percent with yet another 'Santa Claus rally' and a 'Merry Christmas' to them. I took all my short positions and VIX long off. I don't remember if I mentioned that. Now we will see what this latest attempt by the financial community to baffle the world is all about. I would give that a 50-50 at least at this point, and cannot quite see things going much lower, unless they are really of a mind to take it all the way down, and bring it all the way back up in December, lets say on the news that the Fed did not have the stones to raise rates after all that. Nomi Prins does not think that they will. And I respect her judgement. But having missed their window, and being preoccupied with doubts about their whacky QE and Twist programs that have accomplished almost nothing except ghosting the middle class and upsetting the balance of power in the republic, I really hesitate to put anything past their busy little financial engineering hands. We will sacrifice all, our lives, liberty and sacred honor, for the Banks. Have a pleasant weekend.
