Some areas for ES. If a fifteen point drop anticipated by ZH is going to happen, it will fall into a nice grouping.
http://www.zerohedge.com/news/2013-10-13/early-fx-indications-eurjpy-slide-implies-15-point-futures-drop-open

Finally someone besides me explains what I see as far as these wonderful asset prices. All the damage the rah-rah cheerleaders and especially bloggers are doing. They don't care, they don't even see it. I try to explain, and they all say 'Look, I know it's all going to crash, but I want to get as much for me and my family as I can in the meantime.' Well, here's the thing. For example, in the market, we all think we are competing with the other traders for the money, and if we are better than the suckers, we get their money. Nope. Goldman, JPM et al, they get it all. Then, if anyone is better than they are, they take some from the big boys. End of story. Traders need to understand that. That's the way it has always been.

Now enter the totally controlled market ramped by endless phony digital dollars. Well, as we rah-rah the market, here's what needs to be understood. When we get more of the pie in this case, we don't take it from the big boys, we take it from the hard working middle class and the poor. The richies are protected, they decide on their cut first, and that in inviolable. The more we get, the more it comes from those that are barely making it. That's a fact. And that fact disgusts me. And if we want to do this, fine, let's do it. But make sure you understand this, and look at those those rah-rah 'The market's going to a million! It's a new paradigm! It can't be stopped! This is totally fundamentally supported, and is only getting started!' people/bloggers, and realize the damage they are contributing to, the evil they are involved in, and how they simply won't look at what is happening. In that way, to me, they are just about as evil as the big boys. How evil was a Nazi solder who said 'I was just following orders'? Get the point?

So, when you hear me saying things like 'This thing is unstoppable, it's a monster, it may never stop going up...' I am being facetious, parroting those bloggers and Joe Average, trying to vent my personal frustration, and teach a lesson at the same time. It may all be true, but we don't need to revel in it, act like it's all a great thing, and we should all understand that the higher it goes, the more people suffer. This system is sick and twisted, and until the masses truly understand that, this won't end. But, people want 'something for nothing', and the allure, especially when you are struggling, is great. And that lets the evil SOB's in.

http://market-ticker.org/akcs-www?post=225196

I would surely expect so.

Originally posted by rat89

snap into the close?

Originally posted by jimkane

Time for it to head right back up?

Nah, I just can't 'wish' for any more downside. I can let a play run, but I can't get my hopes up, only to be dashed again by the money printers.

Here they come for the pop and close at the high tick?

Yep, piece of cake, new highs a comin'.

Hmmm, thought sure they'd pop it. Maybe in the after cash. Got to leave some juice for a big Sunday pop, though.

Must read:

http://directorblue.blogspot.com/2013/10/helpful-chart-heres-how-much-youll-be.html

So, this is the kind of stuff I'm seeing everywhere. 1,000% confidence the market is headed higher. A lot higher. But I was around for the final move into the 2000 dotbomb bubble top. And they had been saying this kind of stuff for years. And they were exactly correct for years. And I think they may be now. That maddens me to no end, but that's just the way it is. I've been experimenting with various scenarios. For example, margin debt. It just exceeded the levels at 2000 and 2007, both leading to the market getting completely monkey-hammered. So, by all measures, it should be done. My thinking is a 'breakout' of margin to double the level (the 'measured objective' in regular TA). And PE's. Using one metric there is that chart that is floating around, it's been in several articles I've posted. Other than the 2000 top, we are now at the level that has ended every bull market in the county's history.

The idea is that 2000 was an extreme outlier that has led to all that has followed, and that extreme will never, ever happen again. I recall hearing that when the Nikkei hit its bubble top its PE was 200, the highest ever recorded for an index. In 2000 the Naz PE hit 275! So, this seems to make sense. Except one thing. Every bubble, mathematically, must be bigger than the last one, so to exceed the 2000 PE makes the most sense. Hence, I think the PE might 'break out', do some type of 'measured objective', and 'stop run' that old PE. That may happen as the ES rises to 3400. Earnings aren't likely to rise much, but price is. The PE would explode. If prices double, the PE doubles if earnings are about the same. Hmmmm. Naz has to not only take out that old high (something I think is beyond madness, given it had a PE of 275 at that time, and yes, the dollar had been highly devalued since then, but still...), it has to exceed it substantially, maybe be one or two thousand points. I'm thinking this is all in our future.

Now, a few caveats. I think this can only happen if no 'black swan' events happen. This thing is a house of cards, and any event at any time could trigger the fall. So, for this to happen, 'luck' would have to be with it. Also, this assumes Old Yeller does what is expected, and ups the money printing. If it stays the same, the returns will diminish. A blowing bubble needs more and more to accomplish less and less. So, I suspect she'll go to $120 bil a month, then $150 bil. This assumes, then, that the bond market doesn't 'rebel'. I can't see how that could be, but it has to be for this to unfold. More printing and another debt ceiling increase early next year should lead to a downgrade. So, many things have to be watched, and have to not happen, for this scenario to play out. And there are so many possible black swans, as Spain and Italy hang by a thread, and the highest percentage government in France now ran on a platform of France out of the EU. So, black swans abound in the shadows. But, it seems like what 'they' have in mind. I wonder what the next, bigger bubble will be after this? My guess? WWIII.

http://www.thereformedbroker.com/2013/10/16/rocket-fuel/

So, they keep saying there is no inflation, and we need more inflation. Let's see. I got my prescription the other day. It was up. 265% My better half just called me from the grocery, my almonds are up from last time. 20%. I looked at my tax software for this year. It was up. 33.33%. Recall that link I posted for health plans and all those triple digit increases. Nope, all that doesn't sound like any inflation to me. I agree, we need lots more.

BTW, let's quickly talk about the CPI. Now, for me, my medical insurance is almost 40% of my total expenditures. So, for me, I'd like the CPI weighted so medical insurance is figured at about that level, say 40%. Look at what others pay. And to do it right, you can't look at all those who pay little getting it from work, and figure that percentage. If your employer is paying for it, it's the same as if you are. In theory, the employer could just pay you more and not include the insurance. It's the same with FICA. I'm self-employed, so I pay 15.3%. Workers pay 7.15%, but their employer pays the other 7.15%. If they didn't, they could pay you 7.15% more. So, you pay it all, regardless. I think 99.99%, literally, of people are simply unable to comprehend that fact no matter how many times it is explained to them. It's just a limitation of the human mind (and poor education), and it a big part of why we are in the mess we are in.

Anyway, I think the CPI should weight medical insurance between 20% and 40%, but more towards the latter. And since this is one of the fastest increasing expenses, it is very important that it be weighed accurately, to insure accuracy in the CPI. The current weighting? 0.6%. Yes, 0.6%. Well, that's a nice way to keep those old inflation figures down. The Chinese recently did the same thing with housing data. They tweaked the weighting of houses, and the weighting of rural/city data, and so on. Presto, no inflation in China. EZ-PZ. Yep, there's no inflation.