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Why 95% of Traders Fail

Manipulated Stock Market Short Squeezes to Another All Time High - The China Syndrome

Stock-Markets / Stock Markets 2014 Nov 23, 2014 - 04:25 AM GMT

By: Nadeem_Walayat

Stock-Markets

The stock market spent virtually the whole week giving the impression of levitating in thin air that increasingly convinced many with each passing day that the market would resolve to the downside. Instead the market surprised virtually all by doing what market trends tend to do most often which is to resolve in the direction of the primary trend, which for a bull market is UP.


My long standing view remains that the stock market rally will continue into the end of the year when I expected the Dow to be trading north of 18,000. Which given that the Dow is now less than 200 points away looks likely to happen a lot sooner than even I had imagined, and something I will soon come back to in greater depth. In terms of immediate price action, the market needs to correct as I highlighted last week that a normal correction would see the market revisit the breakout point of at least 17,400.

Once more all of the bearish scenarios reinforced by a week of bad fundamental news proved WORTHLESS, from Europe teetering on the brink of recession to Japan plunging into economic depression to US snowmageddon, all proved worthless noise because as I have often written that usually we won't actually know what the actual fundamental drivers are until long AFTER the price has moved! Which is why economists tend to be blind as bats when it comes to economic forecasting let alone attempting to extrapolate ivory tower economic theories on to market price movements and so why most of the time they can instead be found looking in the rear view mirror to explain what has already happened with the benefit of hindsight as if the exercise is of any importance.

Despite this, despite decades of evidence, STILL clueless journalists base virtually their entire programming and commentary on what amounts to perpetual worthless economic conclusions that are usually even incapable of explaining what has already happened in HINDESIGHT never mind at attempting to arrive at what could be the most probable outcome.

So if fundamentals are usually worthless than where do we look?

Well my answer has remained consistent in hundreds of articles and several ebook's that price is where we will find the foot prints of market manipulations as the dark pools of capital accumulate and distribute into and from weak hands whilst all of the time consuming the productive capacity of an economy as they are aided and abetted by the central banks that INFLATE exponentially whilst having a whole stream of paid vested interests perpetually pumping out propaganda of the ever present threat of deflation that never actually materialises.

15 Mar 2009 - Stealth Bull Market Follows Stocks Bear Market Bottom at Dow 6,470

The markets ARE manipulated, once you as a small investor come to agree with this statement then you can take the necessary steps to prevent yourself from being wiped out by ALWAYS keeping this in mind that Manipulated markets WANT you to act in a certain manner at certain times, they want you to buy into the latter stages of a bubble as the manipulators distribute, and the market manipulators want you to SELL into Market Bottoms and early bull rallies when the manipulators are accumulating.

Who are the market manipulators ? Today it is the Investment banks, investment funds, CEO's (stock options) and last but not least HEDGE FUNDS that created the stocks bubble through leverage of X20 or more that subsequently bankrupted the banks that were driven insane by short-term greed with trillions of dollars of liabilities which have NOW been fraudulently dumped onto the tax payers. I have not heard a single story of a hedge fund manager losing money, not one! They have BANKED their profits ! The losers are their investors who held on and the banks who leveraged them up to the tune of tens of trillions, and in the final instance the Tax payers who are being FORCED to bail out the bankrupt banks to the tunes of tens of trillions!

The only thing that actually matters is the PRICE ! NOTHING ELSE! and I mean NOTHING ! Not earnings, Not fundamentals. Listen to the PRICE or you WILL miss the Stealth Bull Market!

To be clear when you hear someone warning of imminent deflation know this that you are either listening to a FOOL or a vested interest in perpetuating the deflation myth for the reality has always been of exponential inflation as a consequence of rampant money printing which is why most people, at least 90% of the general population are WAGE SLAVES to the elite who as a consequence of INFLATION own most of the productive capacity of an economy and why ordinary people no matter how hard they work and despite increased productively as a consequence of technological advancements still are getting poorer in real terms as at least 50% of the nations wealth produced is being siphoned off in the interests of the elite.

This week we saw an arm of Britain's secret police state stationed at GCHQ once more exposed in its quest for total control of ALL internet communications as GCHQ in partnership with internet firms such as Cable and Wireless (owned by Vodafone) hacked into internet backbones to copy everything. In response to which Britain's gestapo put up a smoke screen of propaganda to divert attention away from their agenda by alluding to threats such as ISIS for reasons why it is in the public interest to conduct TOTAL SURVEILLANCE OF the British people.

Channel 4 News once more exposed Britain's secret police states full spectrum surveillance of the internet in the following video -

At the end of the day the real threat to the west is not ISIS, which is just a smoke screen that the elite uses to massage the psychology of the general population, not only that but the CIA to all intents and purposes created the ISIS leadership in its Guantanamo training camp so that a perpetual threat can always be supplied with warm bodies so that the war is never won but continues for ever so as to enable the elite to invoke police state measures to control the people,

The war is not meant to be won, it is meant to be continuous. Hierarchical society is only possible on the basis of poverty and ignorance. This new version is the past and no different past can ever have existed. In principle the war effort is always planned to keep society on the brink of starvation. The war is waged by the ruling group against its own subjects and its object is not the victory over either Eurasia or East Asia, but to keep the very structure of society intact. - George Orwell

For instance Abu Bakr al-Baghdadi, the head of ISIS is a former resident of Guantanamo Bay where I am sure he went through the CIA's white room programming programme that pressed the buttons that would turn a clueless Islamic fundamentalist into an effective leader of a Jihadist movement, an enemy created for a hidden agenda that the mainstream media continues to magnify the threat of for propaganda purposes.

What is the hidden agenda for the creation of ISIS ? What is the end game ?

Over throw of Assad ? Probably.

Creating a pretext for the Israeli Military Empire to invade and further steal another nations territory (Syria) all on the basis of religious myths, even more probable. Remember you heard it here first!

Anyway the real threat is NOT ISIS, it's not even Russia's Putler, for given two facts that firstly Russia is a basket case that economically just cannot compete that given the plunge in oil prices cannot even afford a border war let alone invasion and occupation of Eastern Europe, and secondly Putlers age means that he will soon be gone from the scene and the West will be able to once more press the reset button and the European situation 'should' then calm down for the truth since the end of the cold war is that there has been no ideological difference between east and west instead the current conflict is mostly in Putlers paranoid head which has not been helped by NATO's retarded expansion eastwards.

So NO, Not Russia, the REAL THREAT is CHINA!

Today we only hear occasional murmurs of the Chinese threat, but it won't be long before we start to feel the full consequences of China's conversion from an economic superpower into a military superpower that will be a GLOBAL THREAT with literally a fleet of air craft carriers nearing completion.

That is the REAL threat that the west faces and will likely result in what is unthinkable today such as a U.S. / Vietnam military pact which I see as INEVITABLE. In the not too distant future Vietnamese and U.S. forces will be conducting JOINT military exercises in an attempt to contain the Chinese Dragon.

However, I fear that the clowns in the Pentagon are more concerned with creating propaganda such as ISIS and so I fear that it is highly probable that there will come a day when the United States will wake up to another Pearl Harbour! But this time it may all be over on that first day given that war gaming would conclude that any reaction would soon escalate into nuclear conflict and therefore China could succeed in permanently expelling the U.S. from Asia in just one day!

Source and Comments: http://www.marketoracle.co.uk/Article48325.html

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2014 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

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© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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