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Brian's Friday recap: Another day of man vs. machine

Brian Shepard

Collective Intelligence!

Stanton Analytics and MrTopStep Webinars with "Spreads and Their Relation to the Flat Price" THIS SATURDAY 11am CST - http://bit.ly/10HwSM7  For those interested in the Saturday webinar, we are going to cover how the spreads foretell crude direction. The smart money uses them. We should too. I will try to show real time examples if I can share my screen, which should be no problem.

Jim_M worth watching> something I already knew ... Get Early Market Advantage for a Fee? > http://video.foxbusiness.com/v/2478173914001/get-early-market-advantage-for-a-fee/?playlist_id=1866680862001

We have always suspected that the smart money had news before the rest of the public. It was confirmed last night when a news story broke that entities (traders) pay for an early release of data. It is time to wake up America. We are being fleeced by banks and hedge funds. In 2008 that amounted to nearly $7 trillion. The absurdly low interest rates take more money from the populace to give to the banks. Yes, the banks pay us nothing for deposits, then will not lend the money to the same people. If one is self employed, which is the largest job creation machine in the economy, one has to jump through hoops to be given a loan or modification. The amount of paperwork involved takes weeks if not months. Now we are at a disadvantage in the marketplace. IT IS CRIMINAL INSIDER TRADING. Where’s the SEC; THE TREASURY? Is that porn on that computer screen? You see, they even stole the “R.”

Sam_E better plan boys. don't predict what the market or people will do. predict what the algos will do. thats what i do. better on the train than the tracks. just my opinion. the algos are here to stay and dominate the market. predict their character. its a lot easier than peoples. algos are finite. people are not. much more predictable. Albie_S Sam: would you say algo's are basically programmed to fib's, pivots, prev levels and perhaps Elliott Wave? Yes!

Following Thursday’s better than expected retail sales and jobless claims, the markets steadied overnight. But it was the Fed chairman’s words late in the day Thursday that boosted enthusiasm for shares. He said he would push back against imminent tapering. He was no doubt concerned with the turmoil in the Asian markets, which was starting to spill over into the U.S. trading.

But a negative view on China’s GDP from Nomura bank citing: tighter liquidity and marginal support from officials the chief economist of Nomura said China GDP could fall below 7 percent in the second half of the year. Turkish Prime Minister Erdogan and anti-government protesters have the basis of a deal to end protests at least temporarily. He promised there would be no move to raze the park until the courts decide. This is one geopolitical support that has been removed from the bulls’ arsenal.

In Iranian elections, the early pre-election support is for the reformists. The leader in the polls is Hassan Rohani, He is a cleric aligned with the reformation movement. He calls for a free press, release of prisoners and a more liberal university. The populace is in a festive mood prior to the elections with horns blaring and joyous people taking to the streets - posted by Stanton_Analytics

Posted here by Carley Garner Wednesday: Our models are calling for a buy down here in the ESM 1611/12 area, but 1608 is possible so any longs should be willing to ride it a little lower if it happens. On Thursday Carley Garner posted: We are looking for a swift bounce in the dollar index. We are recommending our clients buy September futures and then buy July 81 puts. The risk is limited to about $700 and has theoretically unlimited profit potential. We think a run to 83 could be in the cards. http://twitpic.com/cwzbwu

Kathy (http://structuraltrading.com)  (08:19) CL new scenario, potential pb to 97.72 to 97.4 (sig sup test), a hold above these tests imply 98.9 tgt still in play. A b/d 97.4 has ideal min retrace tgts for both the ABCD & Deep Crab w/ confluence at 95.55 region http://screencast.com/t/NQgk19v0M

Kathy (09:56) ES forming megaphone consolidation, currently testing support line, still seeking a BC leg for green triangle http://screencast.com/t/BfrHhr6nZGoq

Kathy (10:00) NQ forming BC leg w/ help of Bat/Crab pattern, premkt chart: http://screencast.com/t/xNdSTXx0B , current chart: http://screencast.com/t/rXVmCc95fARH

Kathy (10:44) New harmonic rotation unfolding, currently there is the minimum requirement for the BC leg of emerging Gartley, a b/d 1623 has 1619.75 tgt, this little pattern will help price reach the ideal min pb tgt for green pattern (tgt 1618.5) http://screencast.com/t/E3ysq9KjDw

Kathy (12:50)  ES FINALLY ... finally has pulled back enough to form a C pt of green emerging pattern (with the help of a bullish Gartley) ... now the question is: How much can this bullish Gartley retrace? The ideal min retracement tgt is 1624.25, if cannot get there or that's all we get = shallow retracement, increases probability could still be forming BC leg http://screencast.com/t/ypNccQW3SIPU

One of NY’s finest researchers has joined Twitter. MrTopStep gives a big thumbs up to https://twitter.com/RVchartchatter

Fed's Bond-Buying Wild Card: Inflation Expectations http://online.wsj.com/article/SB10001424127887324049504578543732746191690.html?mod=googlenews_wsj

Brian Shepard is a 20-year exchange member of the CME Group.




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DISCLAIMER: The information and data in the above report were obtained from sources considered reliable. Opinions, market data, and recommendations are subject to change at any time. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any commodities or securities.