Drawing in Shorts to Goose the Stock Market

aThe stock market is vulnerable.  What can be done? First publish multiple articles about how bad the economy is. Make it obvious that now is the time for the market to drop. Draw in as many short sellers as possible. Then squeeze them into covering with friends of the Fed buying with countless free dollars. The article below is one of those articles. Don’t short when stories like this show up on Yahoo Finance and other outlets.

http://www.businessinsider.com/earnings-season-warnings-for-economy-2016-7

But, notice the green index at the bottom of the chart. The green index is simply the percent of total etf volume divided by total non etf stock volume.  Normally before a new up leg is orchestrated, etf volume surges as the elite who are fed information about central bank plans in return for their help, load up on bullish derivatives.  Normally this index is in a valley before the market drops. When central banks have bought  heavily enough, in the past they have been able to turn the market regardless. Notice the level at February of this year.  The rich are trying to get a criminal elected president of the United States. This is a critical point in their timeline.

I believe that beginning Monday, the Central Banks will be in the up no matter what mode.  There are two possible outcomes here. It can work for a while or this could be the time when Mob cuts and runs. In a free market setting no one in his right mind would touch a stock in this situation. Remember, organized crime is running the financial markets. There is not much relationship here to genuine economic issues such as the ones in the link.  I did think the market would tank last week during the Democratic Convention. I still think we are close. The economy is being destroyed. Only the central banks can keep the market up. It could go on like this until the whole system fails. Don’t think the mob hates you. This is not personal. It is more like you are collateral damage.

 

 

 

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About Fantasy Free Economics

James Quillian independent scholar,free market economist,and teacher of natural law. Who is James Quillian? Certainly I am nobody special, Just a tireless academic and deep thinker. Besides that, I have broken the code with respect to economics and political science. Credentials? Nothing you would be impressed with. I am not a household name. It is hard to become famous writing that virtually no one in the country is genuinely not in touch with reality. But, if I did not do that, there would be no point in my broking the broken the code. If you read the blog, it is easy to see that there are just a few charts, no math and no quantitative analysis. That is not by accident. Given what I know, those items are completely useless. I do turn out to be highly adept at applying natural law. Natural law has predominance over any principles the social science comes up. By virtue of understanding natural law, I can debunk, in just a few sentences , any theory that calls for intervention by a government. My taking the time to understand the ins and outs of Keynes General Theory is about like expecting a chemistry student to completely grasp all that the alchemists of the middle ages thought they understood in efforts to turn base metals into goal. Keynesian theory clearly calls for complete objectivity. Government can only make political decisions. Keynesian techniques call for economic decisions. So, why go any further with that? Fantasy Free Economics is in a sense a lot like technical analysis. Technical analysis began with the premise that it was impossible to gain enough information studying fundamentals to gain a trading advantage. Study the behavior of investors instead. Unlike technical analysis, I don't use technical charts. What I understand are the incentives of different people and entities active in the economics arena. For example, there is no such thing as an incentive to serve with life in the aggregate. In the aggregate, only self interest applies. It is routinely assumed otherwise. That is highly unappealing. But, I am sorry. That is the way it is. I can accept that because I am genuinely in touch with reality. Step one in using Fantasy Free Economics is for me to understand just how little I really know. A highly credentialed economist may know 100 times what I do based on the standard dogma. Compare the knowledge each of us has compared to all there is to know and we both look like we know nothing at all. There is always more than we don't know than what we do know. I am humble enough to present myself on that basis. Why? That is the way it is. I am not bad at math. I have taught math. What I understand is when to use it and when to rely on something else. Math is useless in natural law so I don't use it. While others look at numbers, I am busy understanding the forces in nature that makes their numbers what they are. That gives me a clear advantage.

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  1. Pingback: Stock Market Next Week | Fantasy Free Economics

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