Tuesday 14 August 2012

The Grind Continues.

So it does. BTFD crowd are unable to push it convincingly to the orbit beyond the gravity and the sellers have gone on strike. Possibly everyone is on vacation and the juniors do not want to rock the boat too much.   In many ways this current rally does seem like the one of March when it just kept grinding higher. But that was then. Conditions are different. Then it was LTRO driven rally. Now it is hope driven. That things are so bad, some one or other, either in China or in Europe, will intervene with money. If none else, then the dragon slayer Ben! Jackson Hole is round the corner and who can forget the QE2, which came out of JH.

It does not matter that things are about to go kaput. O & B team will provide free money to every one in America. O to the voters and B to the Banksters. Then everyone is happy.
We just can't stop salivating.

But we will leave the Economorons with the task of lifting the heavy duty discussion about economics. And just keep the common sense functioning in this mine field. We all have some quantifiable edge in dealing with stock market. Some use TA, some use Elliot wave, I depend mainly on cycle analysis and understanding of the criminal psychology of the TBTF bankers and Oligarchy. In fact if you read history, you will find that the criminal behaviour pattern of this group has not really changed over centuries. Thus a study of the financiers of middle age Venice will give you some behavioural clue of the financiers of modern age. They are more dangerous than a Mexican gang.

Coming back to market, my cycle top was around August 13 -14. So we will see what tomorrow brings. If SPX closes below 1385, I will add to my short positions. The existing short positions are in red but not by much. It was like buying a lottery ticket with higher odds not an investment decision. I still recommend everyone not to front run and manage the risks. The market is not going to move aimlessly like this and a definite trend will soon develop. So lets wait patiently for the definite trend. The movement of AUD is hinting that the storm is brewing and we just have wait a bot longer. My COT indicators are definitely bearish.

I am still tied up with other work and now a days I hardly get time to monitor the market. But that's not a big deal because I am not a day trader anyway. The posts are getting later than usual and not much discussion in depth. So please bear with me for a month or so.

Thanks for sharing my thoughts. Please invite others to join the gang and follow me twitter.( @ BBFinanceblog).


  1. I am still setting on my TVIX with a small loss, no big deal.

  2. BB, support you always!

    It's still no doubt on bearish market if the market won't drop a point but still green end of this week?

  3. we are with u BB. what i have done, is look for individual stock that popped the last few weeks such as LVS, X, GT, ORCL, HOT, and sold some bear call spread. On my radar, i have CVX, FSLR.

  4. Thanks for your posts. You have been dead on in predictions, so bankster history is consistent!

  5. Thanks for taking the time to post. Just waiting patiently for something to happen.

  6. Thanks for your support guys. I don't think it will pop up much but remember it is OpEx week. But it is flashing danger in my system.

  7. BB,
    Your writing's are interesting and well thought out.
    I look forward to seeing if it will help our trading accounts going forward.
    Well done with the blog.

  8. Hi BB,
    Its been a while since I replied as I was on vacation. The index is on the grind ever since I left for vacation. Hope things change now that I am back :)

  9. "Then it was LTRO driven rally. Now it is hope driven." - what if we overlooked something? COuld there be any other sources of liquidity we are not aware of? what about QE in China for example? Thanks!

  10. Flatlining, vix has turned, stochastics have turned. Looks like we are hot air about to blow. This could get fun.