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.
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