"As a technician, I feel that there are few analysts that offer value for me, but you do. Your work on Gold ratios has helped my analysis greatly." --Jordan Roy-Byrne, CMT (The Daily Gold) 4.9.10

Thursday, December 15, 2011

The Vampire Waits...

SPX, NDX, RUT & TRAN
These pesky positive economic reports like the Black Friday crazies out stampeding, holiday hiring and some manufacturing strength are really getting in the way of the crackhead agenda, which is to beckon Mr. Bernanke and Mr. Draghi to come to the rescue lest a deflation 'issue' get out of control.

But a funny thing happened to the SPX today (chart from NFTRH164); it tried but could not get above former critical support (now in the process turning to resistance) in reaction to jobless and manufacturing news.

Jobless claims fell by 19,000 to 366,000 during the Christmas run and two manufacturing regions showed improvement.  The first item is not even worth speaking to.  The manufacturing strength is nice, but how do you think a rising US dollar is going to affect that trend? 

Other US markets are shown on the chart as well and they are not looking good.

Dracula, as we call him in the US awaits an invitation in the form of compulsion.  He does not give a damn about us gold bugs.  Let us burn in the hell we came from.  But let the SPX drop for real, along with the other sad sacks in the lower chart panels and then we got some compulsion.

Over in Europe, they'll drop the pretense at the ECB, the squabbling and the public fretting if markets turn back down in earnest.  They'll likely call upon Nosferatu in due time.

These are the modern markets we have to deal with.  This bit from a post yesterday is truly sad and twisted, and it is a perfect illustration of modern developed world markets and the financial services industries that manage them as they depend not on productivity and true commerce, but inflation.

The “recent strength in data” allows Fed officials to “be a little more patient than they otherwise might be,” Coronado said.


http://www.biiwii.blogspot.com
http://www.biiwii.com

at 12/15/2011 06:28:00 PM
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3 comments:

  1. 'Over in Europe, they'll drop the pretense at the ECB, the squabbling and the public fretting if markets turn back down in earnest. They'll likely call upon Nosferatu in due time.'

    I don't think so, they are truly an independent central bank, charged only with price stability. The North Europeans will never allow it. Europe will take its medicine. The Euro will succeed, as the dollar fails.

    Just my 2 cents!!

    Merry Christmas to you and yours Gary.

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  2. Thanks Gary. You are in the UK w/ a close up view, so I consider your thoughts.

    But I find it hard to believe that, under the cover of failing financial markets, they will not do the politically expedient thing. It is either inflate or die. Do European politicians have some sense of nobility that is lacking in their US counterparts.

    In fact Gary, the ECB's balance sheet has sky rocketed over the last several weeks from around 19 Trillion euros to 2.4 Trillion in 'hockey stick' fashion.

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  3. I can see on this link that assets are at 2.46trillion Euros, but looking back to the end of September 2011, it was 2.28trillion. Increasing, but not massively.

    http://www.ecb.int/press/pr/wfs/2011/html/fs111213.en.html

    Are you getting data from elsewhere Gary?

    I think it's worth remembering that these figures are for the Eurosystem, not the ECB, and so include national central banks.

    I think the next 3 months will determine how the ECB is going to act, and I hope they steer clear of QE, that is what their charter mandates.

    I think viewing events as a currency war (Euro v Dollar) is worthwhile. I laugh at some comments from US pundits on TV, they are almost begging for the ECB to 'do the right thing', as it will prolong US hegemony a little longer.

    Interesting times!

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