Thursday, September 27, 2012

Morning Charts 09/27/12 SPX /ES

Let's just blast thru some headlines and you form your own opinions this morning - 

SocGen's Albert Edwards Lowers Equity Allocation To Minimum On Fears "Fed Will Destroy The World" and the last time he did this was in May of '08. Although this man works for the system, like Rosie, I take his words and thoughts seriously. 

Final Q2 GDP Disaster: 1.25% Growth Comes Below Lowest Estimate - yet the market does not retreat. They lie and expand their estimates up, up, up and the markets follow and the sheeple get right in line. Does the market correct on this news that the economy is in the dumps? Of course not. This means that more market levitating easing will be assured as we QE to infinity. 

Santelli on GDP Numbers: 'Depressingly Weak' I only wish he could tell the truth, the real truth. 

Chicago Fed Asks "What Are Asset Bubbles" As Its President Calls For Even More QE I spoke with Mr. Evans' brother (we golf together) about the Fed and what they are doing not that long ago and all I got was a hung head and a groan. 

Claims for Jobless Benefits in U.S. Fall More Than Forecast Is this a surprise right before an election when the president controls the data. The only surprise to me is that they did not skew the numbers even more than they already are. 

Contempt for Congress Rampant as Public Rejects Sacrifice Well, I did not get any fireworks out of DC as I thought we might before the recess. It appears that they will continue to drive more important issues like gay rights and abortion going into the election and leave minor issues like fiscal cliffs till after the election. The funny part of this post is that we, as typical Americans  want to eat our cake as well. "Fifty-four percent aren’t willing to cap Medicare benefits and raise the eligibility age to 67; 52 percent don’t want to reduce the cost-of-living adjustment for Social Security recipients; 64 percent balk at an increase in individual tax rates; and 58 percent don’t support eliminating some tax deductions, such as those for home mortgage interest or charitable giving." We're so ignorant. 

All the while China took another little blue pill looking for a for hour erection yesterday which makes the global markets happy. It never ceases to amaze me how we celebrate going even deeper in debt like this is good for all. 

Daily SPX - Cause no other charts matter (if any actually). Blue wedge overthrown and waiting on my catalyst. 


Minis Daily - There are three support diagonals for this wedge - Blue which is long gone and at the apex of the blue original wedge was where price began to break down. Yellow was the second support, or support after the first breakdown of the blue wedge, which is what's got price here. Pink is the last line of defense before white and the 200 DMA. 1342, 1400 and 1374 are the key support points. 1502 is key resistance (gotta throw that in cause of the QE love fest). 


Minis 15m - Interaction at the top of the blue wedge and fall to yellow support diagonal and s/r at 1432. Next stop is 1400 if this goes. Potter and friends are doing a great job this morning controlling fear and pumping price. 



GL and GB!

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