Page menu

Wednesday, July 19, 2023

Everything that's wrong with this Market

 Be sure to catch yesterday's 2 (count 'em) 2 market updates; the second of which included updated Dow, and $SPY charts.    

Everything that's wrong with this rigged Stock Market

I could easily do a top 10 things that are wrong with this market, but let's try to keep it to 5....  

1. Cryptocurrency - The ridiculous crypto currency market is a perfect example of everything that's wrong with this market, and proves that valuation is not an indication of real value. Crypto is worth whatever someone is willing to pay for it, and estimates range from 0, to $1 million, depending on who you talk to. Crypto has become just one more sector to pump and dump. 

Speaking of Crypto

I recently called Bitcoin a sell, as it continued to retest the top of the range it's been trading in for the past several months, and today we see it trading back near the bottom of the range. 

Most everything - except tech & trash -seems to be trading in a similar pattern - a topic for another day  

2. Foreign Investors 

I think allowing foreign investors to drive US equities is a recipe for disaster. 

Do we really want to rely on the Saudis and China for future earnings growth? This seems to be a conflict of interest, when national security runs counter to investment strategy. 

When Global Markets collapse you're going to see forced selling of US assets, and the Fed has been forced to bailout foreign entities, more than once. 

3. Corrupt Financial Institutions Run The Table

Just Yesterday: Deutsche Bank Draws Fresh ECB Scrutiny Over FX Sales

How many times have the banks been caught red handed... and all they receive is a slap on the wrist? 

Of course the powers that be go easy on the banksters, because they have campaigns to finance. Politicians know where their bread and butter comes from. 


Hillary Clinton Struggles to Explain $600K in Goldman Sachs Speaking Fees (many sources) 

4. Upgrades, Downgrades, and Rumor, all being reported in real time. 

You can also add to that the endless media hype, and Earnings, reported in after hours trading. Whose brilliant idea was this? I suspect whoever likes driving stocks in 10% increments, on light volume, is behind it, and the AI which makes Options trades in milliseconds. 

5. Insider Trading by Government Insiders Continues 

78 members of Congress caught violating law on stock trades 

Fed Restrictions on Employee Stock Trading Not Strict Enough, Says Watchdog WSJ 

In short, the whole system is corrupt, including the corporate owned lame stream media that covers it.

Market Update: 

I don't like energy here, and I tweeted that yesterday.  
Goldman Sachs just reported lackluster earnings, but we're not going to see any panic selling, until the appropriate time. I can't say when that's going to be, but take a look at what just happened to bitcoin. The short sellers were shaken out above the 31k level, before it was dumped. 

I would either sell into strength, or just wait until you see panic return to the market. 

In the meantime: Watching the Dow 35k level

Take Care, AA


No comments:

Post a Comment