Just who is the "smarty pants" whose call options bought on Monday were thought likely hedging a not insignificant short position may have been answered today. Was it Lloyd's idea to have the Shadow Greek Prime Minister come out with a "fiscal cliff" proposal whose increase in spending was fit to give Kudlow an aneurism? Let the collapsed negotiation blame game begin! As I have been saying, this very well could be intended. Funny how today's gap higher could make put options suddenly attractive...
Now, for all I know the Fed could be working its confetti in options markets these days, and as a community service holding down premiums in the process, too. Of course, this probably would be a service it is contracting out, being an agency in the administration at Free Market U. Likewise being staffed with men and women holding doctorates in short-sightedness, memories of "shitty deals" executed by the firm headed by one Shadow Greek Prime Minister advisor probably have long faded in "faith" lessons have been learned. Let's not forget, too, "the one" leading the people many times has expressed wisdom is never looking back, but forward, and so there is nothing to be concerned about here, and this in the face of a widely held perception among young and old alike agreeing that, everyone who is anyone in Washington is a neo-"con."
All well and good, you might think , that's just the way it is , but, really, it's probably a worthy exercise here to read between the lines and think about who still might be on the scam wagon, particularly now that the temperature on Planet Panic once again has turned hot, hot, hot...
Back on October 12th was noted "Technical Confirmation of Impending Weakness" in an outlook uncharacteristically spot on. At that time, though, an Elliott "rising wedge" was thought possibly forming off early-October 2011 bottom. Now, however, seeing the very same technical confirmation at this time but only further suggests this is not the case. Rather the technical development we see occurring yet again here adds to other evidence presented of late suggesting a can of whoop ass is about to be dispensed.
Far be it for me to lament today's pervasive cluelessness among vested interests whose faith in the Fed's "credibility" keeps the money they manage right where the Monetary Mafia wants it: frozen. It will be interesting to see if some European-style bond market blackmail materializes now that phase 1—the fiscal cliff diving competition—has begun a hopelessly insolvent trans-Atlantic banking system's fast path journey to an urgently needed Fed gusher. If so, there won't be anywhere "safe." Likewise, subsequently, competing with "Close cover before striking" as the most-read phrase on the planet could be, "Get use to it." That is at least here anyway.
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