You also know that I don't read other's opinions all that often, I don't want to influence my own analysis. However many of you send me interesting articles and I take a look at them. One member who I'll not name until he gives me permission, is very on top of some fine authors and often sends me links, they usually are to confirm something I have written recently.
*On a side note this is what I mean when I plead for you all to get involved-all of our eyes are better then mine alone and you are all now indoctrinated into the inner workings of the markets. Most of you now know more then 99% of the Joes so your insights are welcome and could be an extremely valuable contribution to your success as well as the rest of the Wolf Pack.
Back to the thought...
One of his (the person who sent me the email today) favorite commentators is Bill Cara. I've known about Bill since I started Trade Guild nearly 5 years ago, he runs a trading company and has a lot of experience in the markets. Bill and I have exchanged a couple of emails recently and I have a lot of respect for him.
I consider myself to have "inside insight" into the working and corruption, the games, and tactics of Wall Street because of 3C, but Bill Cara has what appears to be decades of experience on what you might call the institutional side of the market. He's not a regular Joe. He has some great insights into the market from his long experience working the professional side of it. I may not always agree with him and we have totally different ways of forming our opinions, but I do respect his work.
So the email I got from our long time wolf this morning referenced what I said in the big post from yesterday,
"The implication here, after explaining what a malicious bounce is meant to accomplish for smart money, was that the NASDAQ and Russell 2000 would outperform the market in general, which they have and that we were already seeing indications that the move up would be starting shortly."
What he sent me from Bill Cara was from Bill's "Week in Review",
"Cara [yesterday's comments on last week's rally] : This week the US small cap index (Russell 2000 $RUT +0.98% W/W) is the only one to lift, and that was only because of an enormous +2.83% gain on Friday. The other three major US equity indexes were up either +1.65% or +1.66%, which, given they all moved precisely the same, appears to me to be a market under control by interventionists. In fact, if it were my job heading the FOMC trading desk, and I was instructed to try to get the average person believing in small caps, and they would be the ones to be goosed."
If I understand Bill's Comments, and the rest of the story is linked above for you to read for yourself, he's saying the market is being manipulated. We may not agree on the reason the market is manipulated, but he's seeing it too. I'm not claiming superiority or trying to get brownie points here (like I said, we each have our own methods), but isn't this exactly what I told you to expect as far back as August 25th-maybe a bit earlier? The market to be manipulated? Know that when he talks about interventionists, he may be speaking of the Fed, I'm not sure he was willing to name them specifically and solely, but 3C showed us someone was manipulating the market and the reasons I laid out, and the evidence we should have seen, has all come to pass. So I believe we are still on track.
Another email I received from our benevolent Wolf (honestly I was fishing last night so I slept in a bit this a.m. with the market being closed and my beautiful wife and I are engaged in the miserable hunt for a home which kept us up until 5 a.m. last night) was an article from Financial Times which again tied into my mega-post from yesterday.
From my post yesterday referencing the accumulation seen in the US Dollar last week,
"Considering the dollar trades inversely to the market, one may be excused for assuming this is a bad development for the bulls in the coming days and I use “days” loosely as it could shift to the upside as early as Tuesday."
He then sent his view...
"So this could be the reason for the 3Cs showing the accumulation in UUP (the US dollar). Obviously this would cause the EURO to drop and the $$$ to rise."
and then he sent this article from Financial Times...
I think if you read it, you'll pull together the pieces of the puzzle and understand why we saw accumulation in UUPJoes will probably be reacting on Tuesday and guess who will be selling them the shares that they accumulated last week? Also, do not discount the media's role in manipulation, whether it's intentional or it's fed to them. The timing of this is a little too perfect.
This is why I remind you why I don't argue with the charts, even when I don't understand them at the time. Eventually all is revealed and we may not know why, but we have the opportunity to get in there early as well. When I spoke of the accumulation in the dollar last week, you could have very easily decided to buy UUP or something else linked to it. I'm here to help you and if I can, I want to teach you to fish, not put a fish on your plate.
So I'm going to leave it at that for now. I'll probably have a short post tonight, I need my beauty sleep so my wife doesn't leave me for some handsome young buck ;) and so I can be on my toes for you Tuesday morning.
Everyone, enjoy your Labor Day and please be safe around that barbecue!
