Dr. Edwin Vieira, Jr. on the Failure of the Public Sector, the Coming Military Crackdown and What Can Be Done to Stop It

http://www.thedailybell.com/724/Edwin-Vieira-the-Coming-Military-Crackdown.html

Another interesting timing clue...

I don't need a chart to say this, the amount of time that the $NDX has spent rallying from the March '09 lows, as of 1/08/10, was exactly .618% of the duration of the crash from Oct '07 to that March low. We are only a few trading days beyond that, so it would still qualify as a Fibonacci turn if the markets broke down here. This is in addition to the exponential nodes we have just seen hit over the last two and a half weeks. So things are not happy today in the markets, and it bears watching, as change could be coming....

Market Manipulation 101

Check out this post on Yelnick, which summarized, says that all of the gains in the stock market in this rally have been made on just 30 Mondays. No kidding.

http://yelnick.typepad.com/yelnick/2010/01/vampire-market-all-the-action-is-at-night.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+PlanetYelnick+%28Planet+Yelnick%29

And then I (along with a lot of other people) get this email today from a professional pit trader (Larry Levine), who has a free newsletter he produces, in which he talks about an event yesterday that raised eyebrows in the trading pits. Some of his comments:

What happened at 12:03pm Eastern Time? There were no reports out, the 10-YR Note auction wasn't until 12pm, and the S&P500 was a bit stonewalled just under 1137.00 after a rally from the day's low. As the market advanced slowly through the congestion it hit: a MASSIVE order, or series of orders, lifted the offer in the e-minis. But it wasn't your garden variety large order of 2,000 mini's - I'm talking about 114 times that size.

At 11:03am today at the Chicago Board of Trade (12:03pm EST) over a quarter of a million mini-S&P500 orders traded north of 1137.00! (228,000 last count)

Could this be real I wondered? Was it some sort of computer malfunction that added too many zeros to the reported, yet smaller, trades?

No, that's not what happened. In fact, a bit of a hullabaloo occurred around my trading booth on the floor of the CBOT as many locals, brokers, and compliance members stared at the aforementioned volume chart in disbelief. As it turns out, all of the trades were indeed valid. None were busted. Moreover, as one of the compliance members told me, he saw the trades listed sequentially (1,000 or 2,000 lot orders) and they all occurred with milliseconds of one another until the massive order was completed.

This order size takes a SERIOUS bankroll to get done. If you are wrong by one-point on a 228,000 lot ES order, you can say goodbye to $11,400,000.00. If you contemplate this size your margin requirement is $1,282,500,000.00, while the notional value is $12,961,800,000.00.

Has a new "playha" hit the scene? Is his nickname "Helicopter?" Has high frequency trading (HFT) taken root in the mini-S&P in a huge way?

Of course by 'Helicopter' he means Ben Bernanke and the Govt. Talk about rigged markets, it sure looks that way...

Rydex Market Timers: A Long Term View

http://www.safehaven.com/article-15479.htm

History 101: The Bulls Are Dead Wrong

http://www.businessinsider.com/panzner-bulls-are-dead-wrong-2010-1#huge-job-losses-1

Remember to flip through all of the slides presented on this link, it gives the complete story...

and when your done with that, check out this equally surprising set of charts on the decline in local and state revenues:

http://www.businessinsider.com/now-see-the-real-state-of-collapsing-state-tax-revenues-2010-1#while-local-municipal-taxes-are-holding-up-modestly-state-taxes-have-fallen-off-a-cliff-with-little-sign-of-slowing-1

Make sure you see all 8 slides...

Nothing short of amazing!

Obviously, some sort of decline has started...

Now we wait for verification...on the Bear...

Another clue...

You see the that the VXN has popped below it's Bollinger Bands. Exhaustion gap for the VXN? Could be...
The VIX looks the same way...

Another warning, from the Russell 2000

To the two nodes overlapping on the $NDX at the end of December, we now add another 1.00 exponential node on the Russell 2000. So we now have a cluster of nodes on two indexes over a fairly tight time frame relative to the long time periods that spawned them. This is again suggesting trend change is in the cards in the not to distant future.

How the Teamsters Beat Goldman Sachs

I found this link over at the Max Keiser blog (you all should visit there, great site), it looks like the teamsters have the muscle and resources to beat the Goldman boys at their own game.

http://www.counterpunch.org/andrew01082010.html

But this is line with a prediction made recently (check posts from a few days ago) that various groups would start to do battle soon over a shrinking pie. This was resolved 'politely', but that may not happen as often as the Bear market proceeds...

It's also clear from this that Goldman is the 'grim reaper', both predator and parasite, as it routinely makes bets against viable firms, brings them down, and then pockets big profits from the unwarranted destruction of these same firms. Totally treasonous, criminal.

Funding and the patriotism test

http://www.ft.com/cms/s/0/0306069c-fbb4-11de-9c29-00144feab49a.html?nclick_check=1

Bankers are worried that they might have to factor 'revolt of the people' into their estimates of a country's debt repayment success....

A related article suggests that many large banks are now worried about sovereign debt risk, and what would be the outcome if a major western country went into default. These banks rarely carry debt default insurance (which is nothing more then some of those loathsome, credit default swaps) on the government bonds of major countries since these carry a 'triple A' credit rating. But if such an event were to occur, it's not clear that they could buy or carry enough insurance to cover it, anyway. Thus it suggests huge losses for the players involved.

I personally would suspect that they are really worried about a cascading meltdown of the whole derivatives market, which would bring down the whole global economic system. The article doesn't explicitly say this, but I can read between the lines here...

Class Warfare American Style

http://jessescrossroadscafe.blogspot.com/2010/01/class-warfare.html

Watching today's $NDX weakness...

Remember that we had the mathematical event of two major nodes overlapping on the 28th of December. That did not mean the top of the market had to be on that day (although sometimes that will happen), only that an internal condition for market psychology should turn on that date. We are still very much in the shadow of that event, and a major decline could start at any time. It was slightly unnerving to see the market rally somewhat after that date, and of course, the market can do anything it wants, but on probabilities, two nodes and a slight trendline breach are pretty strong bearish warnings for the $NDX. I am also seeing a fair amount of negative divergences in most indexes. So still, we are waiting for confirmation that the bear has returned...

Mutual Fund Cash Levels Do Not Support this Rally

http://www.moneyandmarkets.com/mutual-fund-cash-levels-do-not-support-this-rally-37217

This is not a short term timing tool, but does suggest we are much nearer the end of this rally then the beginning...

$NDX Micro charts

Right now the $NDX looks like a breakout is occuring, although one good down day could negate this. The bears best shot comes with the $SPX charts, where major trendlines are being hit right about now. If the $SPX swooned it would bring the other indexes back down with it. That said, it's all speculation. It will be puzzling if the $NDX shrugs off two overlapping nodes and an important trendline. If it can do that, and the $SPX continues up as well, then we have a pretty damn strong market here. The sentiment figures show lots of complacency here.. I wouldn't think anyone would get too involved with this market at this point. The $SPX has a P/E ratio of 151! Kind of scary...

$SPX charts Micro and Macro

Is the US Goverment Preparing the Lifeboats for the Next Financial Disaster?

http://jessescrossroadscafe.blogspot.com/2010/01/is-us-goverment-preparing-lifeboats-for.html

What if they denied you access to the money in your 'safe' money market funds? Wouldn't that torque you off?

Mish Shedlock - Reflections On Market Sentiment

http://globaleconomicanalysis.blogspot.com/2010/01/reflections-on-market-sentiment.html

I've added the 'Chart of the day' to the bottom of the blog...

We'll see how it performs, if it steadily gives good info, I'll leave it there...

Charts will be updated after Monday's action...

We need more data to verify what's next...

USD collapse 2012 and the end of the world as we know it

http://www.financialsense.com/fsu/editorials/laird/2009/1229.html