Transparency In the "New Normal" ~ The Risk Averse Alert

Thursday, June 27, 2013

Transparency In the "New Normal"

Just to be clear, yesterday's return to a most optimistic scenario continuing the market's levitation in counter-trend rally off March '09 bottom is not a vote assigning higher probability to its likelihood. Yet if the hopelessly bankrupt albatrosses of London and New York can somehow continue their global capital suck into an otherwise insolvent banking system's core without precipitating panic, then that scenario at least is a reasonable possibility. Much depends on whether bankrupt Anglo-American imperial parasites can keep their political intrigues seeking to maximize capital flight below the threshold where game changing pushback becomes more likely, if not impossible to stop.

No small concern to marionettes in the "regulatory" community must be the drain on central bank gold reserves presently necessary to prop up currencies otherwise being massively debased. The chorus chiming "the market is misreading the Fed's intention to taper" and "the 10-year T-note is a screaming buy at 2.5%" no doubt is scripted to contain the bleeding. Likewise the attack on the EMU centering on Italy, first with Berlusconi's removal from political influence followed by some new, very old news scandalizing Draghi. The real scum becoming transparent is not the news itself, rather it is the very necessity of its airing.

More recent old news possibly testing the winds of change in the political realm is revelation of how the Irish government was hoodwinked to bail out its stable of imperial bloodsuckers a few years back. Coinciding with the EU's ongoing effort to codify "bail in," this confirmation of what everyone already knows, or should know, in all probability is meant to hasten consensus necessary to bless the intended, imminent theft "bail in" represents. Yet another demonstration of transparency in the "new normal."

Three straight days working a broken price discovery mechanism, first through Chicago, then onto New York, might have run its course today, leaving Friday to decide whether last week's negative, "outside" reversal will be itself reversed, at least to the effect of momentarily stabilizing downward pressure whose technical basis still finds evidence indicating this garbage is by no means out of the woods.

Three straight days working a broken price discovery mechanism have yet to produce advancing NYSE issues exceeding the mark of a couple weeks back, whose prospective indication of heightened possibility the market's decline to that point might be reversed instead failed to deliver the goods. Nor has the CBOE Put/Call ratio yet registered an "all clear." It still remains above its 200-day moving average. Ditto the Volatility Index.

For now let's assume an a-b-c wave up from Monday's low is in the midst of forming, with its "a" wave largely completed, if not entirely so.

Word on the Street
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