Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Time to take the RED Pill - 28th May 24
US Economy Slowing Slipping into Recession, But Not There Yet - 28th May 24
Gold vs. Silver – Very Important Medium-term Signal - 28th May 24
Is Gold Price Heading to $2,275 - 2,280? - 28th May 24
Stocks Bull Market Smoking Gun - 25th May 24
Congress Moves against Totalitarian Central Bank Digital Currency Schemes - 25th May 24
Government Tinkering With Prices Is Like Hiding All of the Street Signs - 25th May 24
Gold Mid Tier Mining Stocks Fundamentals - 25th May 24
Why US Interest Rates are a Nothing Burger - 24th May 24
Big Banks Are Pressuring The Fed To Losen Protection For Depositors - 24th May 24
Another Bank Failure: How to Tell if Your Bank is At Risk - 24th May 24
AI Stocks Portfolio and Tesla - 23rd May 24
All That Glitters Isn't Gold: Silver Has Outperformed Gold During This Gold Bull Run - 23rd May 24
Gold and Silver Expose Stock Market’s Phony Gains - 23rd May 24
S&P 500 Cyclical Relative Performance: Stocks Nearing Fully Valued - 23rd May 24
Nvidia NVDA Stock Earnings Rumble After Hours - 22nd May 24
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24
Micro Strategy Bubble Mania - 10th May 24
Biden's Bureau of Labor Statistics is Cooking Jobs Reports - 10th May 24
Bitcoin Price Swings Analysis - 9th May 24
Could Chinese Gold Be the Straw That Breaks the Dollar's Back? - 9th May 24
The Federal Reserve Is Broke! - 9th May 24
The Elliott Wave Crash Course - 9th May 24
Psychologically Prepared for Bitcoin Bull Market Bubble MANIA Rug Pull Corrections 2024 - 8th May 24
Why You Should Pay Attention to This Time-Tested Stock Market Indicator Now - 8th May 24
Copper: The India Factor - 8th May 24
Gold 2008 and 2022 All Over Again? Stocks, USDX - 8th May 24
Holocaust Survivor States Israel is Like Nazi Germany, The Fourth Reich - 8th May 24
Fourth Reich Invades Rafah Concentration Camp To Kill Palestinian Children - 8th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Index Ramped Higher by Vested Interests Pre Fed Rate Cut

Stock-Markets / Market Manipulation Dec 12, 2007 - 10:59 AM GMT

By: Brian_Bloom

Stock-Markets

The chart below provides evidence that the industrial equity market was “ramped” by vested interests in anticipation of the Fed rate decision.

Note how, following the Fed decision, the Dow Jones fell back below the intersection of the two trendlines – which is roughly where the technical resistance was before it was ramped.


The On Balance Volume chart is still showing a technical reaction back to the rising trendline through which it broke down in early November, and the slow stochastic is in seriously overbought territory.

Technically speaking, this is not a market that is going to rise from here unless it is artificially stimulated. How will that be achieved?

Not shown here are other oscillators which are all pulling back from overbought territory.

I remain convinced that we are facing a very dangerous period ahead. The key will be the OBV. If it falls below the 6 billion share mark on the 12 month daily chart, that will represent a serious “sell” signal.

Frankly, I cannot bring myself to believe that the bad news is all known. Logic dictates that the sub-prime debacle will have a cascading effect, and the markets tried (and failed) to put a good face on all this. Logic dictates that the subprime debacle was not an isolated event. It was symptomatic of a mindset which pervaded the entire financial industry across the planet. The financial engineers were doing mental gymnastics to generate “clever” products where “risk” was for someone else's account. In the real world, that kind of mindset reflects dishonesty, lack of ethics and, at the margin, downright criminal intent to defraud. I expect the bad news to keep coming, and the spin and bullshit artistry to keep escalating.

The harsh re ali ty, in my view, is that the Fed has run out of wriggle room. If any more bad news starts to manifest they have nothing left in their arsenal. If the last rate cut didn't work, and this one didn't work, why should the next one work? In short, I continue to expect a cascading Bear Mark et. Hopefully, it will drift sideways and slowly downwards but I'm not holding my breath

Finally, look at how the gold price reacted. I am still bullish on gold – but I think the speculators have to be taken out first.

By Brian Bloom

www.beyondneanderthal.com

Author's comment : If you would like to see how the whole jigsaw puzzle fits together – such that the pathway forward becomes visible also to you – please register your interest to acquire a copy of my novel at www.beyondneanderthal.com . It is being targeted for publication towards the end of March 2008.

Copyright © 2007 Brian Bloom - All Rights Reserved

Brian Bloom Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in