Dow Jones Weekly -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Cycle Brackets, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

It’s share buybacks and indirect Fed purchasing (through their aligned financial institutions) that keeps this market from falling.  Notice that these folks don’t push the market up now.  They just show up on the intraday (see hourly) and as soon as the market weakens, in comes Yellen and company.  Very well coordinated.  As long as you trade small, you are safe.  But the cash is coming from somewhere – someone owns these shares when buying.  There is speculation that share buybacks help the bottom line, not just EPS due to ZIRP.  In any event, TWTR debt went junk this week – so all good things do end.  We were expecting a pullback this week.  Instead we were up marginally.  Look for the pullback next week.  Are we guessing?  You bet we are – we don’t have a technical indicator for “when the music stops”.  Momentum is fading – see price and MACD wave forms.

Click on chart to enlarge Dow Jones Weekly Closes Up Four Straight Week – Momentum Fading Fast

Dow Jones Weekly -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Cycle Brackets, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

Obama got his shellacking, version 2 this week.  This ends Yellen’s job to keep markets up to shift or better yet manipulate social mood to aid in Obama getting re-elected.  Even some of the MSM have questioned the election results with the markets at all time highs.  US and European markets have no business being at these levels, but thanks to trillions of Fed created liquidity added to these markets since 2008, here’s where we stand.

So when should we roll over?  We were expecting to roll this week after the election, but there was enough buying to cover Yellen’s tracks – yes even Yellen has friends.  We expect to roll next week – see the daily and hourly charts for the muted price moves over the last few days.

Click on chart to enlarge Dow Jones Weekly Up Another 1.05% – So When Will The Fake Market Run End?

Dow Jones Weekly -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Cycle Brackets, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

Not much point to technical analysis once again as Japan has taken over POMO (from Yellen and the Fed) for the world’s markets.  Yet another wild card.  Earnings season is coming to a close – Whirlpool’s results were worth noting.  Their results and guidance were in the tank and the stock was up 10% on the day of the news.  We expect up moves until the November 4th close (US mid-terms on the 4th) – we were expecting a turn sooner, but Japan changed that.  We should see a sharp decline after elections – the enormous amount of spend and debt to create this false economy is running out of time.  Japan appears to be the last leg to holding up world markets.

Click on chart to enlarge Dow Jones Weekly Close Up Almost 3.5% As Japan Replaces Yellen For POMO

Dow Jones Weekly -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Cycle Brackets, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

You never know what’s going to happen next with the “used car salesman” approach that the Fed / Yellen takes with juicing markets higher.  POMO should end on the 28th of October, but Sneaky Yellen has revenue from purchased bonds that she has stated she will pour back into the markets to make it go up – even more.  Share buyback season, once called earnings season, is now underway.  Of note is Apple who re-purchased $17B in shares in three months that were near all time highs.  With ever other corporation doing this, the only thing that comes to mind is PENDING CORPORATE BOND DEFAULTS.   Buy corporate bonds today and near zero interest and get 50% of their value back in twelve months – it’s quite a deal.  Obama attempts to hold onto the senate on the 5th – this could be the final day of fraudulently holding this gong show market up.

Click on chart to enlarge Dow Jones Weekly Rockets 2.6% On POMO And Fed Bond Earnings Market Pumping – Yellen Bloviates On The 29th – We Think

Dow Jones Weekly -

[Technical Indicators We Use – MACD, MACD Histogram, Bollinger Bands, Candlestick Patterns, Elliott Wave Counts, Cycle Brackets, Volume, Channel Support and Channel Resistance, Support and Resistance Levels.]

Looks like a  hammer bottom, but we don’t expect much follow through next week.  We expect to see channel support break next week as POMO takes one last run at pumping up markets.  Why does the Fed do this?  The US President appointed Yellen and experts know that market indexes reflect an incumbent’s chance of getting re-elected.  If markets stay up, it is likely that things will stay the same.  If markets tank, it is likely that the US Senate will change hands.   It would be shocking to see Yellen extend POMO – the message would be clear that the Fed is now the newest market maker in the business.  This was suspected in the past, but it would be a blatant confirmation if POMO goes into November.  Yellen’s word would be worthless – similar to that of a cheesy used car salesman – and calls for Yellen to resign would get very loud.

Click on chart to enlarge Dow Jones Weekly – Fourth Down Week In A Row – POMO On Monday, Tuesday And Thursday
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