Seems to me I was correct. Oil futures contracts behaved as expected.
I just know how the futures work. I have no idea where Oil is headed but for the same reason I would not short oil TODAY under 66.15 is pretty much the same reason I would not buy oil TODAY above 68.89.
It is all about getting traders trapped. The trend appears to be down for the day, but in fact the prices signaled an up move was coming once the price stayed above 63.98.
Also there is so much negative press about oil hitting 40 and so on.......that was a good reason to not take the short bait.
So what you are implying is that it's really stupid to think that high priced stock prices can be maintained that are supported by the creation of money via the creation of worthless debt that can NEVER BE REPAID EVER......right?
Keep it simple and stop using a 200 day moving average. Use a 252 day average since there are only 252 days in the trading year. Then use a 252 day linear regression curve. The 252 day average is around 114.10 and the 252 day linear regression line is 113.89
The curve is the trend and the average is the consensus of value. Put a line on your chart where the curve PEAKED........that was 119.46. The push ups over that level have been all market manipulation by the bulls trying to get people to bite. It is so easy to see when you use the inter-relationship of a linear regression curve with an average.
I am looking at a long term chart of the SPY with the 2009 low as my starting point. And I am wondering.......what the heck is the spy trading above 160 a share for anyway?
Japan is using worthless currency to buy stocks. On the same token.....this is not a crash. Lock limit down......that would tell me something and this is not even close to lock limit down.
Stock indexes mean nothing. NOTHING NOTHING NOTHING. The rigging is simply how the indexes are created and this new DOW and NEW SNP was rebuilt intentionally to withstand an attack.
It has nothing to do with VALUE. It is simply about what accounts can be blown up. YOu could not have paid me to short near 2038 on the futures........NOT yet.
Corners get broken by those who are part of the team who say they are not selling when in fact they are. Consider what happens in a pack of Buffalo. The alpha does get taken out.
Do you know how many people simply put money into stocks with absolutely no idea what they are buying. Just talk to people who have no idea what a stock index is, and how they are calculated.
I spoke with a CPA yesterday who pays a financial planner $6,000 a quarter. So I asked her if she knew how the DOW was calculated. Not a clue. She had no idea about components and how they change. Same with nas100 and SNP500.
But she told me that her clients were not doing well in general with their individual stock picks.
As I continue to say, the indexes mean nothing. They are simply the advertisements, the published information to get the attention of the general public.
The game is very simple. The indexes can be protected much longer than just one stock and they were built and created since 2008 to withstand pretty much anything other than real long selling.
The real issue when speaking about an asset is, what is an asset?
An asset by definition is something that generates future economic benefit.
For something to generate future economic benefit, it has to do one of 2 things.
It has to generate enough positive cash flow to offset its cost basis. If it does not do this it is not really an asset.
If it does not generate positive cash flow to offset its cost basis it has to appreciate in value. Appreciation of an item such as a stock that does not pay adequate dividends to cover the cost basis inevitably leads to a fall in price when the price gets too high relative to the yield. So naturally the term for an Asset that has gone sour for a holder is called, A BAD INVESTMENT.
So, by definition to say a Government has an ASSET is pretty much an oxymoron. The only way SOME government assets generate future economic benefit is to use them to steal other people assets that generate benefit for the original holders.
My guess is that there are no government assets other than the military holdings that could actually be used to generate benefit for the United States. So, with that being said, the debt associated with these items completely eliminates their asset value anyway.
With that being said, the USA can not ever pay back its debts and that of course leads to the truth that the holders of US debt are not really holding assets either. Dunrunnin is unable to understand this concept about what a true asset is. This is why I do not look at a stock index as a measure of anything.
You are correct. The truth is that these markets only track who is in the most vulnerable position. It could be longs or shorts. Every account can be kept track of. That is what the computer networks do. "They" trade against the imbalance of those who are unable to cover their margins. It is that simple.
Do you happen to know the size of the debts that are owed and to what entities those debts are owed? I think that is the big question. As I recall the housing bubble created a debt of about 2 trillion or more that was transferred back to the taxpayers.