In 2005 I began to notice chart patterns which were previously useful were turning into traps, For example, when a head and shoulders top pattern was completed, a short squeeze would ensue. Every now and then this is normal. But on every single trading, it is not.
In spring of 2006, Henry Paulson became the first activist Treasury Secretary in history. From spring of that year on, the market had an invisible floor under it.
The lower volume was, the stronger the market would be. The volume chart began making a perfect parabola pattern with few exceptions. Then there was the emergence of the snake pattern, on minute by minute charts patterns, never seen in history before.
All action occurred in the first and last hours. Could there be a conspiracy, devoted to elevating asset prices? Would it even be possible? Could it be done? The 100 or so richest folks in the world certainly have enough money and power to do it. Would they? A better question to ask is Why wouldn’t they? But, Woo, James, that is conspiracy theory, therefore it couldn’t be true. Right?
Adam Smith, is well thought of, but his observations are routinely treated as platitudes..Some of us take his wisdom to heart. If Adam Smith
is to be believed, it is nearly impossible that stock prices are not thoroughly manipulated. So, who should we trust here?
Lets look at a chart of the Dow along with the percent of stocks over their 200 day moving averages. Around 26 percent are above their 200 day moving averages. This is the level that would be expected at the bottom of a bear market. Is this the bottom? I am betting that the bottom is about to fall out instead. 
This is based on the whole bull market being phony from the beginning. The ingredients necessary to move it higher are missing. There is one caveat… that means nothing….. will be done to try and save it. I made a similar point in the article below. In 1987, the market did suddenly crumble but there was a recovery. If we experience that kind of event this year, it will keep on dropping. Any recovery won’t start for at least two years. Our system is so corrupt, any recovery at all should not be taken for granted.
How long and how short are you?
I am hoping to trade what looks like a bear market rally.
Your blog has been valuable and is improving.
You might wish to return to ZH and present it to others. That is how I learned about it.
Thank you for your work.
All I have are a handful of bear 3x ETfs. My focus is on having cash after the crash. I am not trying to time this market. Why? I cant. I will add to my ETFs but somebody must blink first. I won’t short until the ALGOs loose control. There are still very few long term holdings hitting the market.
I don’t see a quick ending to any bear market. So, after the market has dropped 20-30% Shorting opportunities may abound. That is not my advice, it is just what I am personally doing and thinking?
With respect to returning to ZeroHedge, I would love to. They delete any post of mine that includes a link. FFE is on a blacklist obviously. I am even censored on Firefox. ZeroHedge apparently had to make a deal in order to be allowed to engage in Google controlled advertising.
I don’t know what good any of us are doing in these echo chambers. All in the echo chambers are quarantined. Opinions and answers abound but all that is accomplished is that of like minded participants showing off for on another. That is why I am so big on yard signs. The impact of mine is small, but it does give others permission to think something other than the mainstream conventional wisdom. I am serious about that. Most will not entertain a though until they see others doing it.
As it is, there are no paths out of our quarantine. Those have to be created.
As long