Stacked Deck

by Larry Levin

Everyone knows what a "stacked deck" is: a deck of cards that are prearranged to be dealt so that a specific person will win. The man who stacked the “financial” deck is Ben Bernanke and of course the winners will be the banksters.
 
There was no good news Monday to speak of, but there was another MASSIVE rally on Fraud Street. What's more, the volume was once again abysmal so I guess it is getting back to normal.

• Last Friday’s GDP report was horrible, a recession warning indeed. Monday’s rally was a continuation of Friday’s.
• Personal income & outlays were slightly worse than expected.
• Pending home sales were 30% worse than expected.
• The Dallas Fed Survey was much worse than expected, coming in at -11.4 instead of -2!

 
And yet, the equity indices went higher tick, after tick, after tick.  As mentioned above, Monday's volume was pathetic, coming in 36% LOWER than the recent 10-day average and 50% lower than the 20-day average!  Additionally, the aggressive buyers ended the day trading a net of nearly 3% more than the aggressive sellers despite the news above.
 
Oh, but there was one other piece of news: Hurricane Irene was a dud - New York wasn't destroyed.  This is good news to be sure, but is it worth today's massive rally?  The clueless clowns that litter the media, and I just heard this on the local news, would have you believe that today’s explosion was a "relief rally" due to the tame weather.  
 
Sure.  Whatever.  Question: wouldn’t there have to be a steep decline PRIOR to the "relief rally" if it were true?  Why yes, there would be.  After all, what else is a relief rally?  But what happened Friday?  Looking at the charts we see there was a...rally!  So this was a "relief rally" from a rally.  The media no longer "reports" - it simply regurgitates whatever it is told to say.
 
The financial media started to get the real story out near the end of the day, which brings us back to Ben Bernanke and his stacked deck of cards.  Despite Bernanke’s non-admission of QE3 on Friday, the market is pricing it in now.
 
Remember, whatever the banking mafia wants the banking mafia gets – and it wants QE3.  There is no "free market" but rather a market that is being hand delivered to the powerful few.  Witness today’s ridiculous rally despite BAD economic data and wretched volume.
 
I’m just glad I know the score: it’s stacked against the average guy, but I’m not an average guy.  I know how the game is played and I’m just trying to enlighten as many others as possible.

 

  

 

Trade Date: 8/29/11

E-Mini S&P Trades*

(before fees and commissions):

1. No "Secrets" trades filled today.  

2. Algorithm positions (5)

3. "Reading the Tape" positions (0) ...combined Secret's, Algo, & "Reading the Tape" total...+5.75

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