by Andy Hoffman, Miles Franklin:
As usual, a massive, PPT-orchestrated “rally” – based on not a shred of good news – has caused the mainstream media to completely shut down; let alone, on a weekend. Unfortunately, “Economic Mother Nature” is proving too powerful for their best manipulative efforts – as even the most jaded, system-compliant “technical analyst” can’t dispute the painful fact that the “Dow Jones Propaganda Average’s” chart is as ugly, and “toppy,” as can be imagined. I mean, just how similar to the August through November, PPT-orchestreated “stock save” has the past month’s 1,700 point rally been? And how ugly has the global economy gotten over that time – punctuated by China’s 25% year-over-year decline in February exports?
The same goes for the world’s most important market – given that it generates more corporate, municipal, and sovereign revenues than any on the planet – crude oil. This weekend’s “nail in the coffin” news from Iran, ending any remaining hope for the “production freeze” (let alone, production cuts) the market has hoped and prayed for, has damned the market to an upcoming bout with reality in the very near-term. And if you though the Dow’s chart was ugly, look at little ground the crude market has actually regained, despite its ridiculous, $12/bbl “oil PPT” orchestrated dead count bounce – in not even coming close to its 200 DMA, before becoming heavily overbought.
And the same goes for commodities in general, as the CRB Index’s minuscule 12% rebound has been even more pitiful. At 18%, crude oil is one of its highest-weighted components; so given how weak the index’s overall gain has been, consider how much weaker it would have been without oil’s 45% gain. And oh yeah, Precious Metals also have an 18% weighting – so their average 16% increase is also well above the CRB’s average gain. In other words, like your typical NFP employment report, the devil is in the details.
Yes, there have been plenty of “horrible headlines” this weekend – like hundreds of thousands protesting in Brazil, calling for Dilma Rousseff’s resignation; Iran saying an oil production freeze will not happen; miserable, well-below-expected Chinese retail sales and factor orders; a major political loss for Angela Merkel in this weekend’s German state elections; and heck, Deutschebank “selling” a trillion of toxic derivatives to the U.S. government – I mean, JP Morgan and Goldman Sachs. Throw in the news that a cadre of Central banks, led by the Bank of England, “proudly” announced they have created their own version of Bitcoin – in other words, admitting their fears of the future of fiat currency; and you can see how the “hits keep coming,” whether “markets” are rising are falling, and will continue to do so ad infinitum. Oh, did I mention JP Morgan predicting that the ECB’s next move will be to directly monetize equities? As if they aren’t doing so already.
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