Highs being retested..

I am watching this market carefully. Still have my short position.

I believe (so far) that this is only a retest, but I could change my mind..We'll see...

Above, end of day readings on Friday, the 24th, from Clickcharts...

Dialogue before the storm.

I had an experience today in a public place where there was a television set running. Being there by myself, as is my habit, I turned the set off, to gather my thoughts. I regard television as mostly noise.

A young girl about 20 entered the room, and looked up at the TV on the wall. She said “Why is the TV off, is it broken?”

I said, “Yes, and it has been that way for 25 years or more.”

She then said to me “What do you mean?”

She was intrigued and puzzled and disturbed by my remark.

I said “Bread and Circuses” It’s like Rome, keep the people entertained, and they won’t care as you slowly steal everything of value from them. She had heard that before, I could tell this by her response.

Then I paused and said, “It’s worse than that, really. They are stealing our money, and also feeding us genetically modified foods, that will slowly kill us.” I explained quickly the issues there.

Then I said, “When they slaughter cows, they run them back and forth through a wooden pathway, and the cows never can see straight ahead, as that’s where a man with a sledge, drops them as they come through the gate at the end of the wooden pathway. The idea is to keep them distracted, turn them left and right, they never see what their fate is ’till the very end.”

Then I pointed to the TV and said, “You see, that’s your wooden pathway.”

Quietly, very quietly, looking down, she said “I get it.”

I saw her later that day in that same public place, looking down and looking “quite bummed out.” But I knew I had managed to reach one young person, about the deep core of our media soaked, twisted culture.

But I can’t in my own mind tell myself whether what I did was right or not……….

Straight talk to some Russian Bankers by Mike Maloney...

I got these links from the Financial Sense Site

A guy named Mike Maloney talking straight talk to a bunch of Russian Bankers.

Very good presentation, very clear, and he managed to disturb the Bankers..

Mike says he’s speaking in the ‘belly of the beast’. Russian Bankers are not much different then ours…

This is interesting, amusing and a bit dramatic. Probably why Puplava has it on his site…

http://www.youtube.com/watch?v=uzef43gdupk&feature=player_embedded#!

http://www.youtube.com/watch?v=0Wrrzsrb-wg&feature=related

Indexes falling away from overhead trendlines. Decline starting...

HSBC Commercial Account Manager responds to "Amazing Arrogance, Gall, Chutzpa, and Unmitigated Effrontery from Berkshire Hathaway"

HSBC Commercial Account Manager responds to "Amazing Arrogance, Gall, Chutzpa, and Unmitigated Effrontery from Berkshire Hathaway"

Your future – earning points as a good human that brushes your teeth with a toothbrush that monitors you for good behavior

Your future – earning points as a good human that brushes your teeth with a toothbrush that monitors you for good behavior

$RUT at confluence of trendlines.

Although I wasn't expecting this morning's pop in the markets, I shouldn't have been surprised. The Irish woes have deepened, and the PPT probably is fighting a market drop. $VIX went up sharply, and so did the markets at the open, something that probably shouldn't ordinarily happen.

But the Russell is at a place now where three trendlines (two magenta and one green) are very close together as you can see, and that should be a nearly impossible place to make much further progress, I would think....

End of day update: Move went parabolic after my earlier posting, I have updated the chart to show where it ended up. It's at a hard resistance now, if it doesn't turn tomorrow than all logic is out the window and new levels of fraud are operating in this market...

Myth and Madness - NYT

Myth and Madness

http://www.nytimes.com/2010/09/19/opinion/19dowd.html

Christine O’Donnell is in a fantasy world. Literally.

“We’re rowdy, we’re passionate,” she told the enraptured crowd. “It reminds me of the C. S. Lewis Narnia books, where the little girl asks someone about Aslan the lion, who represents God, and she says with a little concern over such a fearsome lion, ‘Is he safe?’ And her friend says, ‘Safe? Who said anything about safe? Of course he isn’t safe. But he’s good.’ ”

She’s right that there’s an untamed beast rampaging through American politics. But this beast does not seem blessed; rather it has loosed a kind of ugliness and wildness in the land.

We the People in the Ruling Class Elites do think O’Donnell comes across as alarmingly loopy. But maybe she’s smart as a fox in doing a Single-White-Female, Fox anchor makeover to look more like her queen-maker, Sarah Palin.

She’s also smart to think of politics in terms of passion and myth — two elements Barack Obama was able to summon during his campaign that are sorely missing from his presidency.

She might have gone a broom too far, though, when she once told Bill Maher that she had “dabbled into witchcraft” and went on a date with a witch that included “a midnight picnic on a satanic altar.”

Obama’s bloodless rationality has helped spawn the right’s bloodletting of irrationality. His ivory tower approach to the nation’s fears and anxieties about the economy gave rise to a tower of angry babble. Tea Party is basically a big tent for anger.

The president’s struggle to connect and inspire passion is a dispiriting contrast to, as Yeats said, the worst, full of passionate intensity.

The first African-American president, who wrote in his memoir that he trained himself as a young man not to let his anger show in a suspicious white society, now faces anger on an unprecedented scale from a mostly white movement.

He seems weary of crisis management, conveying the attitude of the hero in “The Incredibles” who has to keep saving the world: “Sometimes I just want it to stay saved!”

The president seems put upon and impatient with reality while his foes seem happy to embrace fantasy.

Obama can connect with policy. He just can’t connect with the objects of policy. Empathy seems more like an abstract concept than something to practice.

He has never shaken off that slight patronizing attitude toward the working-class voters he is losing now, the ones he dubbed “bitter” during his campaign. There is no premium in trying to save people’s jobs and lift them up and give them health care if they feel that you can’t relate to them. That’s how Mayor Adrian Fenty lost his job, despite D.C.’s progress on schools and crime.

The insane have achieved political respectability while the sane act too good for it all. The irrational celebrate while the rational act bored and above-it-all.

When Rahm Emanuel leaves to go run for mayor in Chicago, all the blood will drain out of the White House. And Obama can go to Ben’s Chili Bowl for lunch every day and it won’t matter.

Somethings cooking with the $VIX..

This says that $VIX has been quiet, too quiet..

[KR78] Keiser Report – Markets! Finance! Economic Recklessness!

[KR78] Keiser Report – Markets! Finance! Economic Recklessness!

The Ominous Silent Canary

The Ominous Silent Canary

Great article by JIM Willie..

By the way, getting closer to a short position in the markets...

Update: Just took small short position on $RUT, 12:00 Central time.

More charts suggesting topping actions...

Upper charts show $SPX sticking it's nose above important trendlines, lower chart shows indicators showing weakness, divergence.

Saying something similar to Hopper's recent Oscillator work.

Dead - by Larry Levine

http://blog.tradingadvantage.com/?p=1142

Excerpt:

"In my last missive I wrote “Although ‘roll over’ in the futures will continue through the week, a good deal of the volume is already trading in the December contract. The Labor Day vacation period is over. Rosh Hashanah is over. Roll over is essentially over. There are no more excuses to be made by Mr. Market as to why he wants to continue impersonating Rip Van Winkle. The coming weeks should be more lively…”

Hopper's oscillators

Hi Mark,

Back to my original oscilator, the lines show there only very little room to move up and more room down. Could be a double top?

Markets, Pres. Obama's tax proposal

Peter Schiff seeing, as I do, early signs of the Bond Bubble Breaking.

This leads to dollar devaluation and/or a Sovereign Debt Crisis for the U.S.

Rare color footage of the blitz in London 1940-1941

http://www.telegraph.co.uk/news/newstopics/britainatwar/7980194/Rare-colour-footage-of-Blitz-unearthed.html

Quite dramatic. Good quality film, overall

Britain took a pounding…

Trading-wise I don't like anything I'm seeing.

All of these charts represent a kind of gridlock, and conventional indicators aren't acting real well either. Stochastics and MACD on daily are in contradiction. I am not in this market at the moment. Too weird out there...

Armageddon is getting closer.

Jim Willie is saying some important things. The bursting of the bond bubble could be relatively close. We have a double bottom forming for sure on the 5 year yields, and arguably on the 10 year as well. so, the logic is this:

Jim Willie:

“Watch the Gold/Oil Ratio, which is poised to rise noticeably. Gold is the commodity king, namely it is money. The worldwide recession will keep the crude oil price subdued until the USTreasury bubble pops. Then, at that time, several major commodity hedges will jump in price, rendering a cost shock to the USEconomy. It is broken to the core, broken at the foundation, broken from grotesque imbalances, broken from vast pervasive insolvency. An inflationary depression lies dead ahead! Notice the recognition of Gold, its distinction as the king of commodities. The usual accepted hedge against the USDollar in Wall Street and London accounts has traditionally been crude oil.”

http://www.marketoracle.co.uk/Article22364.html

Me talking here:

The key words here are “inflationary depression”.

This is the final nail in the coffin. The bond bubble bursting implies higher interest rates and (much)higher prices for energy and other imported necessities. Employment, and the tax base collapses. Sovereign debt crisis for America rapidly becomes a currency crisis. With employment collapsing, money scarce, and the purchasing power of the money collapsing as well, all social and political structures collapse.

Similar events at varying magnitudes will occur across the West.

My thinking, this could all happen within a year of the first real recognition that the bubble has “burst”.

There is an earlier technical signal that would confirm a bond bubble bust then the upper trendline failure I have been mentioning. The 5 and 10 year yield curves have a sort of double bottom in place, or forming, as I have mentioned. The high point between the double bottoms, is at a yield of 2.8% on the 5 year, and 4% on the ten year notes. Those levels, when exceeded, will suggest to a lot of Bond technicians that the moment of truth has arrived.

If investors hear these concerned raised by the technicians, it may precipitate the crisis.

I would encourage all of you out there to examine these bond charts and familiarize yourself with the patterns I am pointing to...

Looking at the charts themselves, it is entirely possible that this point of recognition could be less than a year, or as little as some months out, depending on the way the charts develop...

Take steps to protect yourself..buy some physical precious metals...

Chart symbols :$TNX and $FVX referenced to Bigcharts.

The best interview available on how things will be...

http://theautomaticearth.blogspot.com/2010/09/september-4-2010-jim-puplava-interviews.html

A bit long but a 'must read' interview, How the Peak oil crisis interacts with the financial crisis.

Another turn coming?

Looks like it. I got knocked out of the bus going north, but it looks like I may be able to ride one going the other way, soon. The candlesticks showing up look like tops, and look at the Russell $VIX below, the volatility index is in the bands, and oversold. The chart at top shows the $SPX nearly at a high trendline, offering resistance.

Watch the $VIX's intraday, for an entry point for a short today or Tuesday...

Saturday update:

I am noticing that there are trendlines above that correspond to daily Bollinger Band levels. Those are at about 1300-ish for the $SPX and about 660-ish on the $RUT...we might get up there, and it might be later than Tuesday.

There's also still a chance that whatever top we get may not be a major one, weekly and monthly charts look like we're closer to a bottom then a top on those time frames..