Tuesday, April 3, 2012

Some Currency/Credit moves

First I have to say, CNBC is reaffirming why I don't listen to them. They are talking about how the market "mis-read" what Bernie said premarket last Monday that sent the market higher. Bernie was intentionally ambiguous as this was pre-market on the first day after the first red week in the market this year plus the end of the quarter. The manipulation is insane, but thus far, as we have seen, it appears Wall Street knew what was coming, they set up a strong, but brief bounce to sell/short in to and then as we expected last week before the bounce even started, it's over. Remember, I said, short, but sharp and distribution throughout. As far as I'm concerned, the manipulation is so pervasive, the F_E_D is directly involved.

 The Euro divergence with the SPX/$USD, this is the initial reaction to the minutes, the dollar surged.

 Here's the dollar surging a lot more then the SPX had fallen at the point of capture.

 The FXA divergence is now leading VERY negative, it is below where the accumulation period started.

Look at Credit, it didn't follow this rally at all, I think the Credit markets are so large that they may have felt they couldn't get out of the way in time. Credit sells off at 2 p.m.


 As a reminder, here's the short 1.5 day accumulation on a 5 min chart, suggesting what I have said the whole time, brief, sharp and negative divergences throughout, meaning selling in to strength.

Here's the 15 min chart, this shows how bad the negative divergence in to this last bounce has been, 3C is hitting new lows (leading negative).

If this doesn't show you manipulation of the market, insider information, I don't know what does.

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