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... Red Dragon Leo

I might just do that Steve, at least until next year. This crazy twilight zone trading has killed me… both mentally and financially. I do see next year as being much better trends, and the first one will be down.

Red

... steveo77

Red, my answer is to pretty much stop trading…just been rolling options to later months when prices are attractive….like that nuclear holocaust movie…the only way to win is not to play….sad isn't it?

... steveo77

Chart of Charts 121109 — Boneless Chicken on Hot Tarmac
In some unusual action the normally stable 20 Day Moving Average is

Flipping Around Like A Boneless Chicken on Hot Tarmac

There are alot of elements to this chart. I know it is confusing, spend some time to review it.

On Sunday, I added in the Heat Map (now near the bottom 5 DMA chart), and the little dog started mouthing off too…..

Questions or suggestions appreciated, I will respond as time allows. Sign up as a follower please….it's just a click.
http://oahutrading.blogspot.com/2009/12/chart-o

... Red Baron

Your site is a “labor of Love”
Good work !!!

... Red Dragon Leo

I wish it was that way MS. But unfortunately it isn't. I'm sure heard on the news earlier this year about Goldman Sachs getting their computer trading program stolen. It was used to buy and sell the market based on what everyone else was doing.

They had their phone lines tapped into the trading floors computers and were able to see the new orders coming in before they were executed. They would then take a position before those orders, and benefit from them as the market then moved in that direction.

It worked in milliseconds, but it was basically like seeing the hands of all the card players sitting at the table before they made their bets. You could adjust your bet accordingly. Crooked and illegal of course.

But, they have many former employee's in the government to protect them… including Tim Giethner, and Ben Bernanke.

Goldman has been receiving money from the government on a weekly basis, every since the March lows. Goldman is the “PPT” (Plunge Protection Team)!

Ronald Regan created the PPT after the 1987 crash. It was supposed too be used to prop up the market in case of another crash. It has since been used to “Control” the market direction.

Now, it wouldn't be so bad if they hadn't got a huge raise in March. In the past, the amount of money given to the PPT was truly small, in comparison to today. Mole, over at EvilSpeculator.com actually charted the amount going into Goldman (the PPT).

The last I read it was 3-5 Billion each week. I read somewhere that Obama printed more money in first 90 days then our country has had in existence since it began in 1776.

Where did all that money go? Into the stock market, and into the pockets of a lot of crooked people. Huge Bonuses didn't come from actually making a profit, but by buying up your own stock, making it look profitable.

It's always been rigged MS, but now they an unlimited supply of money to back their evil plans. You could play the game before March as they didn't have the funds to prop up a huge volume day (and they really still don't), but light volume days are totally in their control.

Don't expect any technical's to work on light volume days, as buy programs almost always come in at the end of the day to prop up the market, preventing it from any natural correction.

When you constantly prevent something from naturally correcting, it will eventually crash huge! That's what they are doing, and it's not what the originally PPT was designed to do. They were suppose too be used “Only” for an emergency, not daily manipulation.

Anyway… it's real my friend, but all we can do is to try to figure out the next move, and be there to profit from it. Next year should give us the large volume we need, so this market will soon find it's “real” direction.

Red

... Red Dragon Leo

I wish it was that simple SC… Now, if only the “FED” would tell me when they are going to rally the market and sell the market, I'd ride along with them. Unfortunately they don't make it that clear.

The “Tape” is clearly rolling over to the downside now. How can you go long when it points down? What are people to do… throw out TA's and just go long forever?

I don't know the answer, but if I did, I'd certain follow it. If you find out, be sure to let me know. LOL!

Red

... SC

Don't fight the FED. Don't fight the tape. — Marty Zweig, a quarter century ago.

The more things change, the more they stay the same. 🙂

... MarketScientist

Hey Red,
Thanks for sharing your market updates and thoughts.
I am from the O'Neils school of thinking that the market is a great, collective force that small individual investors simply have to listen and follow – no argument, no predictions, no bitching etc (unless one is the head of $10 billion hedge fund operation!).

So I was skeptical about this government manipulation theory. How does it work? Who is buying to keep it artificially high? May be we can follow the trail of those stocks where this money is pumped into? Or is it limited to currency weakness through excessive money supply, which indirectly inflate stock/commodity prices?

If it is indeed the case where government can have such control, then there is no better time to have such control than now in seeing the markets propped up – at least until the State Of the Union address in January, through continued policy announcements of some sort. Now I'm turning into a believer 🙂

... Red Dragon Leo

Thanks Captain…

It seems to have played today while I was gone. I guess I didn't miss much. Let's see… were the Retail Sales good? Well, the “Fake Numbers” were… but I'm sure the real numbers are horrible.

But, you can't beat the crooks at their game, in their casino. You just have too try to figure out their next move, and hop on for the ride.

I'll be trying to do just that next week, and will of course post my thoughts here too.

Red

... Red Dragon Leo

Thanks Captain…

It seems to have played today while I was gone. I guess I didn't miss much. Let's see… were the Retail Sales good? Well, the “Fake Numbers” were… but I'm sure the real numbers are horrible.

But, you can't beat the crooks at their game, in their casino. You just have too try to figure out their next move, and hop on for the ride.

I'll be trying to do just that next week, and will of course post my thoughts here too.

Red