|NYSE Advance-Decline Differential 10-DMA vs. 200-DMA|
We see above yet further physical substantiation of the adage, "Prices can fall of their own weight, but it takes buying to put them up." In fact since mid-November 2012 said "buying" is quite evident. Yet many other facets of it revealed by other technical measures we regularly review here rather exposes its contrived quality. Such underlying dynamics as normally making for a sustainable, bullish trend simply have been absent over the entire duration of the market's recovery off March 2009 bottom. We quite reasonably suppose, then, that the market's levitation is hanging by a thread spun purely of fantasy. The point we raised here again yesterday alludes to this fantasy's substance: if lenders of last resort have omnipotent power to prop up any old piece of garbage they wish, then why has this not always been their policy?
Let's face it. Garbage is garbage and eventually it will be thrown out of very necessity. And that is why propping it up has only recently become lender of last resort policy. Yet doing so nevertheless requires rationale. Indeed, we're being nice calling this "fantasy." Truth is it's criminal. Over its evolution, too, we are front row witness to an increasingly overt, criminal intention driving those who subscribe to the reasoning behind it. From Greece to Cyprus theft born of a criminal rationale is as plain as day to see: it is out in the open, while scarcely provoking a peep from a so-called "free press."
So, the market's suspect technical state evidently is born of acknowledgement that, circumstance not at all likely to go unchallenged alone sustains its levitation. Having increasingly moved now toward provoking even nuclear powers, this being utterly necessary to sustain the voracity of the backstop propping up garbage, we might go out on a limb and reasonably suspect the CIA, say, could be about to have its ass handed to it. At least that part in partnership with MI-6. Of course, some "one step back, two steps forward" event might circumvent the seemingly growing likelihood that, all things proceeding from Venice on the Thames soon could face grave challenge from opposing elements who see the writing on the wall in blood reading "slavery and death."
The point is "damned if they do, and damned if they don't" is vulnerability pervading most every institutional layer of today's status quo, the likes of which only the more plainly operate with overt criminal intent. Confrontation is being aggressively provoked rather than skillfully avoided. This insane directive is not the least conducive to growth and prosperity. Rather conditions forcing contraction and destitution are being fostered. This is a favorable backdrop to a rising market unlikely to be challenged? All too many think this, blithely ignoring reality staring them squarely in the face! They're dreaming! Such is life consumed in fantasy. Everywhere we look is contraction and destitution being institutionally imposed, and this right up to the very top here in the United States. Little wonder, then, the market's stuffing remains extraordinarily thin. There's probably little time left, too, before fantasy meets reality in an historic bloodbath sinking prices today levitating garbage in the stratosphere back down to earth (and for all too many beneath it in proper burial).
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