Let’s get right to it. First off, let’s look at some technicals for The Dow. Most people like to use The S&P , but I get a clearer view looking at The Dow. Note the volume on July25th.. This was short interest coming on from the large banking institutions. I will get to the reasons exactly why they decided to short after you take a look at these historical prices and volume, starting with the incredible volume on July25th;
| Date | Open | High | Low | Close | Volume | Adj Close* |
|---|---|---|---|---|---|---|
| Aug 9, 2011 | 10,810.91 | 11,251.08 | 10,588.55 | 11,239.77 | 2,366,660,000 | 11,239.77 |
| Aug 8, 2011 | 11,433.93 | 11,433.93 | 10,779.05 | 10,809.85 | 2,615,150,000 | 10,809.85 |
| Aug 5, 2011 | 11,384.29 | 11,634.04 | 11,126.32 | 11,444.61 | 5,454,590,000 | 11,444.61 |
| Aug 4, 2011 | 11,893.79 | 11,893.79 | 11,365.74 | 11,383.68 | 4,266,530,000 | 11,383.68 |
| Aug 3, 2011 | 11,863.89 | 12,152.96 | 11,857.91 | 11,896.44 | 6,446,940,000 | 11,896.44 |
| Aug 2, 2011 | 12,130.22 | 12,152.96 | 11,857.91 | 11,866.62 | 1,674,180,000 | 11,866.62 |
| Aug 1, 2011 | 12,144.30 | 12,320.94 | 11,978.55 | 12,132.49 | 4,967,390,000 | 12,132.49 |
| Jul 29, 2011 | 12,239.28 | 12,262.74 | 12,044.21 | 12,143.24 | 5,061,190,000 | 12,143.24 |
| Jul 28, 2011 | 12,301.95 | 12,412.48 | 12,200.99 | 12,240.11 | 4,951,800,000 | 12,240.11 |
| Jul 27, 2011 | 12,498.65 | 12,499.48 | 12,275.38 | 12,302.55 | 3,479,040,000 | 12,302.55 |
| Jul 26, 2011 | 12,592.12 | 12,618.11 | 12,457.25 | 12,501.30 | 4,007,050,000 | 12,501.30 |
| Jul 25, 2011 | 12,679.72 | 12,682.97 | 12,509.58 | 12,592.80 | 35,368,908,800 | 12,592.80 |
Note the price movement of the index on the 25th. Barely down a little over 100 points down, yet the Dow traded almost as much shares in that single day, then it did in 3 weeks! Once these huge banks gain control of the market they can move the bid and ask prices wherever they wish, They work in collusion with each other to cause the common street investor to stop out, panic and take profit = sell off to further lower the prices.. You might be thinking why would they do this, and isn’t this illegal?
1. Yes, it is illegal, but they have a ton of offshore accounts and complict SEC officials that allow it, of course for a piece of the action!!
2,, the big question = why? The answer = world economic issues, especially overseas, bail outs of Italy, Greece,, COST MONEY.. these banks needed FAST AND QUICK LIQUIDITY without taking a loss. (therefore passing the loss to you, the investorl thanks Bill Clinton for repealing Smoot–Hawley and Glass–Steagall!) to cover the costs of present and future EU bailouts.. The Banks did not want a repeat of 2008, where they lacking liquidity, even after selling off and shorting market positions.. Also adding to this move was that they knew in advance, the USA credit rating would be downgraded. This added not only to their fears of lacking liquidity, but also big money private investors because many believed the Feds would raise their Funds rate in between banks and interest rates accross the board. The Feds quashed that fear today and this is why the market rallied and has likely seen the bottom for the time being. But where was the heavy volume of 20 billion plus shares covered?
DOW FUTURES!! pre and aftermarkets.. The Markets will be fine for now because The Fed has eased fears, and the thieves have “stolen” what they need for now to bail out failing Eu’s like Italy and Greece, even Spain.
I believe the Fed was directly involved in this manipulation to cover their asses too.. All Central banks/bankers are utter thieves!
You will not hear this on CNBC, rather you will hear those shills telling you to buy, as they did when market was 12,600. They either are truly ignorant of this, or complicit or both. In a nutshell, this is how I am able to accurately predict market moves and see big selloffs coming. I hope you enjoyed this read!!
Scott
Great stuff Scott. Can you describe in greater detail how the volume could be so high with short interest without the market going way down on 7/25? Who is on the other side of that insane volume that could produce a basically break even day? Also, when you say they “gain control of the bid/ask,” how are they able to do this……..just by holding so many shares? Thank you sir.
They control the price by swapping shares back and forther to each other, they collude.. They are also known as “Market Makers” aka, “MM’s”
They pick The Dow 30 and select S&P and Nasdaq stocks.. they cannot control every stock obviously, but because they temp control the big ones, they cause over all market panic and selling. they manipulate the prices by selling off to each other, then they cancel the orders between them before the 3 day settlement.. in between, they sell short to more unsuspecting buyers like you and I thinking ” we are getting a good deal”..(because CNBC assholes tout them as great deals, which I think some of them are in on the action) then they further drop the market to create heavy selling.. they take the street sells on the bid, shift it to the ask to try to get even more suckers, by selling it short there.. they raise a ton of cash doing this for the purpose to assure they have liquidity to cover the problems in the EU.. all central banks are tied together and are in on it. this same type of thing happened in the crash of 1929, but the banks miscalculated the effect, causing a massive depression, new regulations were put into place in 1930 and 1933 to stop this dangerous and risky behavior that i mentioned in the blog, Stegall and Hawley.. Clinton repealed those in 1998. because the fed said today that they will keep their fund rate at zero, the banks, central banks, etc, now have the proper liquidity to cover present and future bailouts. in a nutshell, Private money and 401 k’s get raped in order to us to in effect bail out banks and faulty governments. hence is why the low to zero interest rates for over 30 months, and the low rates since 2002.. The world’s finance is totally controlled and manipulated by the central banks.
oh and the break even deal; again, collusion, they work together to keep prices stable after selling a short to a street buyer.., they sell short off the ask by one mm lowering the bid, shifting the other mm’s to the ask using “flash bids” that are computer controlled.. they lower the price a bit, then flash bid back up, so it is like a slow step down, all the time selling short off the ask, and not to the bid, follow? again, computer controlled.. I can spot a stock that is being manipulated easily after years of experience.. silver is manipulated quite a bit this was on the globex/comex.. they love to hedge silver.
and stock watch does not give a shit, because they know its the central banks and their buddy big int’s doing it.
you make money in the market by recognizing their game, wait it out and understand when and where they will move markets.. they play on fear with manipulation.. Jim Rogers understands their game, which is why he is one of the greated fundamental position traders ever.. I get it as well, i was able to grow my family’s trust fund substantially by doing this, but i dont have enough money yet to really make the huge bucks.. hopefully in time I will.