I'll start this week's topic off.

I wanted to start the topic earlier but I had some things come up, so I didn't get to it. I see Marcin helped us out this time. Thanks.

I was going to post the obvious, which was that now that O'Bummer folded and tossed it back to CON-gress to try to get some of that egg of his face and onto theirs, I figured the market would gap up huge, and it did.

Here's the funny thing, though, and it's kinda twisted, just like our system. War is good for the market (ZH did a post, I think it was them, showing how the market rose after just about all the recent wars, not that old saw about how WWII was great for our economy), so up it goes. War is off, so up it goes. Wait, war is good for the market, but no war is good for the market. What is bad for the market? Well, nothing, the market only goes up. Stoo-pid.

It's like this logic. The jobs report is bad. Very bad. That means lots more QE, so up the market goes. The jobs report is good, real strong. Economy is recovering, market goes up. How about the jobs report is fairly neutral? QE will continue, market goes up. See, there is no scenario for 'market goes down'. Stoo-pid. That's all I'm saying.

Now, is this the start of a new move to new highs? I think it possibly could be. I'll have to see how things develop, technically and sentiment-wise. I had zero idea last week how this might play out intermediate-term. That 1570-80 area is calling this, and 'they' know this and probably don't like that.

This gap here may break the back of the downtrend, and we can get to the business at hand of finishing this top off. One more push makes for a 3D. I'd prefer a H&S aspect, and that weekly area holding, but that 2000 is still not off the table, or that 1800's area (this one seems more like now). Anyway, those are my thoughts, for now.

Let me clarify this before I confuse some people. I am not bullish in here. The bear market may be underway already. I am just saying that this was not the type of topping formation that I was expecting, so I accept it may not be done. This may mean a 'test' of the highs, or new highs. The new highs may be nominal, or big new highs.

I was just thinking this gap my be the possible start of another machine induced ramp. It also may not be. I'm just watching it, and fully accepting of what it does. I am looking at possibilities. I am no more decided now than I was last week about what the intermediate-term may do.

I am just noting that this is a possible change of sentiment, and may indicate a machine ramp coming, so I won't be stubborn fighting that. That's all I meant. If they need to finish the top, so be it, I'm fine with that. And I'm fine if the bear is already upon us.

Well, since no one is here to discuss trading, I'll post an economic link. Especially focus on the part about Banks and Derivative Super-Priority. Then you can see just how sick all this is, and how the game is likely going to play out. With derivatives able to liquidate before bankruptcy or any other creditors, and an incentive to liquidate over negotiate, the stage is set for a complete asset stripping of the middle class. This has been taking place, it's been my main premise all along, but now here you can see the mechanism, and clear evidence that it is taking place.

As I said before, it is like a plague of locusts and it will not stop until all the middle class has been completely consumed. In my opinion, it will be impossible for anyone in the middle class to retain even one single cent of worth in what is coming. It will be a total, 100% liquidation. Sorry. Hiding your head in the sand won't help, but, ultimately, I am of the opinion that nothing any of us can do will help, either.

We let them do this to us because we were too busy buying Apple products and watching American Idol and Honey Boo Boo to think it is worth the effort to pay attention or get involved. Now we all pay with total, complete, and utter liquidation. Few will believe me, so let me relate a little parable, then I'm done.

I use a soap called Dr. Bronner's. He left Germany in 1929 when he saw what the rising Nazi party was doing. He begged his parents to move. They were caught up in the normalcy bias, and basically kept telling him there is no way that what he was saying could be taking place. He left without his parents. The last communication he received was a censured postcard. The Nazis allowed some communication, but it was highly redacted. If my information is correct, the only thing that wasn't redacted was the punchline. I guess they didn't understand what he meant, and saw no threat in the line. Here's what it said:

"You were right. —Your loving father."

They were killed shortly after.

I think that is what this will come to. A flood of censured, redacted postcards sent to Jim some day:

"You were right. —Your old KT forum member."


http://theautomaticearth.com/Finance/promises-promises-detroit-pensions-bondholders-and-super-priority-derivatives.html

Okay, I have an area overhead at say 55.50-59.00, but the key .447 comes in at 60.62, so keep that in mind. There is another possibly key line that agrees with that. This would have it 30-33.50 off the low on Friday right before that stoo-pid bounce, and it's just about 36 points from the Wed low and that .447. There is also a fairly nice timing factor for this level around the close tomorrow. I am fairly confident it will see that level, even though there are some things right here.

So, it's no 'coincidence' to me that it stopped here and has been churning for a lot of hours at this level. I think they will breach it. I'm not sure if they will drop it for better prices into the AM like they frequently do, I think in this scenario they wouldn't (but they sure don't like to pay up...), they'd want to keep the momentum up until it hits the level I posted. We'll see. A big part of trading is being able to be adaptable and let them do what they do, and then still find your spot. First comes the idea, then comes the hunt for a 'safe' spot.

Remember the movie 'Marathon Man' with Dustin Hoffman?:

"Is it safe? Is it safe?"

EXP ABCD to .447.

One more quick note. There are some things from that .447 at 60.62 to 62.75. I'm not sure if that's another sub-level unto itself, or not. I like the level I mentioned above much better, but this has some stuff, so I want to mention it. It's not just that .447, it's those other numbers and the line there, too. We'll see. I don't like when it's not totally clear, but the complexity of the action at the low there makes for a lot of analysis, and if this is in a big move up (I'm just saying if, to make the technical point here), then the level of precision will be wider because the noise level of a bigger move will be bigger.

Marcin! We have some action in here.

Good evening (your time) / morning (mine), Jim!

Nice harmonicity in KZ.

One after another?

Yes, this is quite funny.
Partitions is a series of three times when Austria, Russia and Prussia annexed parts of Polish-Lithuanian Commonwealth until they took over everything. So their point that this is only the beginning is really good.

This kid in the second poster is PM Donald Tusk also called Donaldinho (like Ronaldinho), as he spends more time playing soccer than working. ZUS - state owned fund.
And a writing below 'One more time' leaves no delusions. And showing chief communist here is well-aimed. After WWII communists nationalized everything including even the smallest groceries.