Please Bend Over

UPDATE 11:22am EST: I’m usually not one to bring up non-trading subjects during the trading day but this really riles me:

I mean, have we lost any sense of reality? This is not fucking Duke Nukem where you can just press the reset button and you get a new lease on life. Where do you think those assets are going to be ‘disposed’ of? Exactly right – to you Mr. Sixpack tax payer via the Fed printing money like there’s no tomorrow. They’re not even buying/selling repos anymore – no, this shit is now going on behind the scenes and out of (over)sight.

Anyway, nothing we can do anyway – I’m not going to raise a battle cry for civic action as this shit never seems to lead anywhere anyway. I for one learned from the fable of Don Quixote. We’re stainless steel rats after all and our primary means for vengeance is to do what we’ve been doing in the past year: Hit them where it hurts by out-trading their greedy dumb asses.

While I’m on that subject – the Zero Lite sensed a strong ‘divergence in the force’ this morning and I have been selling ES contracts right around the top. Got in/out three times and it seems three times is a charm 🙂

UPDATE 12:48pm EDT: I come back from breakfast and we beached the Wednesday high of 803.24:

I just counted the waves again and IMNSHO the latest retracement is too large to count is as part of an eleven wave consolidation (which would be bearish). So, there’s a good chance we are already in 3 of (A) of {2} – or {iii} of C of (4) of {1}. Frankly, I’m a bit surprised that we rallied up this high and if this winds up being confirmed it kind of sucks as well since none of us really got a chance to buy the dip.

There is a chance that we are painting an expanded or running flat, but we’ll only know for sure in retrospective. The argument for that may be the sudden lack of participation I’m seeing right now. It’s gone from huge to almost flat in the past three hours – very strange.

UPDATE 2:14pm EDT: Okay, this is what happened this morning. The folks on the inside were all tipped off on Friday or even before that. They all swooped in this morning (or overnight) in a classic drive-by buying frenzy triggering a seismic shock on the Zero and several other momentum indicators. A few hours later we’re basically completely flatlining (hope I don’t give too much away to non-subscribers but it’s been three hours, so I guess it’s okay) and there is only the ole’ chop chop chop on basically zero participation. My tip to you rats:

STAY THE FUCK OUT!

I know – I seem to say that a lot lately…. but my primary tenet is capital preservation and what I’m seeing lately is dangerous tape. The only way to get in is to position yourself at defensible positions – and that is my primary directive.

UPDATE 3:02pm EDT: I was bored out of my mind and thus went slummin’ over at Mr. Fly’s place. I have to say – I don’t agree with him very often but his latest post is spot on:

The King and all of his men have promised to bestow gifts of leavened bread and sea urchins on us regular folk. They give us 401k plan balance increases, by way of trying to cause inflation. If you think about it, it’s a fucking odd sort of monetary policy, one that everyone seems to be clamoring. They have programmed us into believing “inflation is good,” while “deflation will make you die.”

Who made that shit up?

Last I checked, I like when prices drop. After all, I’ve got money in the bank and spare change in my fucking pockets. The last thing I want is to see the value of my savings deteriorate via gangsterism induced inflation.

Well spoken, Mr. Fly. I can’t get over how these cats on bubble vision actually have the balls to suggest to us that inflation is a good thing. GREAT – your money is worth jack shit and will be worth even less when we’re done with you. Now shut the fuck up and bend over while I ram another tax suppository up your sphincter.

A brave new world indeed. And yes, I’m in a crappy mood today – once I post the Zero wrap up you’ll know why. BTW, it’s not because I’m losing money – I was actually doing well swing trading this morning. Now, I’m 100% cash as I was on Friday night.

UPDATE 3:16pm EDT: I just checked the breadth on the SPX and it’s 491:5 – wow!  NDX is 93:2, and DJI is 30:0. This is as bullish as it gets folks…

UPDATE 3:35pm EDT: 30 more minutes to go – this should be very interesting. BTW, check out Karl’s latest treat on how we taxpayers are going to be gang raped via the ‘bad bank’ scheme.