Just Whose Big Mouth is Challenging Perceptions? ~ The Risk Averse Alert

Wednesday, June 24, 2009

Just Whose Big Mouth is Challenging Perceptions?

It is not every day a U.S. Congressman publicly charges the Chairman of the Federal Reserve with engaging in criminal activity. Big news, fundamentally speaking, because the gambling junkies on CNBC know perception is everything — particularly when the underlying state of things looks more bankrupt with each passing day. Thus, the mad rush to defend "Don" Bernanke.

You know my position. I believe monetarism is as dead as Elvis. There is no saving what has been built up ... polluting the balance sheets of financial institutions worldwide. It is done. Thus, my Mr. Market Twitter on this subject principally is satire for entertainment purposes.

Indeed, the Monetarist Monkey support network might better shut up, because saner minds perceive protests re: Bernanke as a whiny, panicked confession that Wall Street is not yet done fleecing the public. More time is needed to transfer trash from strong hands to weak ... with "trash" most emphatically including equity ... because higher up on the accounting food chain is a mountain of debt whose serviceability is fading with each new month's reporting of conditions in the moribund real estate market.

Yes, perception is everything ... and Mr. Bernanke's appearance before Congress on Thursday is bound to make the job of spinning reality mighty tough. I had no idea Congressman Darrell Issa (R-CA) was going to make waves today. Truly, yesterday's link to "Touch My Monkey, Pet It, Love It" was potluck. Fortuitous, though, considering the anti-government barrage coming from the Tory Press in answer to the S.O.S. distress call from the good ship Monetarist Monkey.

(I'd give you a link to check out, but there isn't one worth citing... "Journalists" are probably too busy digging up the dirt on Issa ... with Shemp — practically in tears — offering the warm-up.)

Time will tell if four days until end-of-quarter is time enough to repair what are now troublesome appearances. Judging by overnight futures trading, the masters of deception are game for a good old college try. Not a surprise. You could see it coming by how the bid on the Pump and Dump was far slower to deteriorate this afternoon, relative to the Big Board...

NASDAQ 5-min
NYSE 5-min

Most telling, however, was the full extent of participation in today's rally on both exchanges...


Fewer than 500 more issues advanced than declined on the Pump and Dump today. This is conspicuously thin, particularly given COMP's better than 1.5% gain.


Contrarily, there were far more Big Board issues finishing positive on the day. Yet NYA was up only 0.63%.

How might today's trading best be viewed, then? Well, first and foremost, as demonstrating the character of a seller's strike ... with a close second being evidence suggesting an uncritical willingness to believe prices will move higher.

And this, of course, is precisely what you should expect just prior to a fleecing.

There is much more than the credibility of the Federal Reserve at stake going into June 30th. A lower close on the month (after trading higher earlier) could signal loud and clear that a new round of selling — parting fools and their money — has only just begun...

Fast Money
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