How well do you think 3C would work if smart money didn't move in packs? How do you think smart money knows which way the pack is moving? Of course there are a lot of legal ways and there are other ways that aren't outright intentional corruption, but two traders having lunch and one mentioning to another they're working on a huge IPO or something like that, some information that shouldn't be out in that manner. There's corruption and then there's just the culture of "In the Biz".
Honestly, how often do I make a forecast as specific as Friday's. "That we'd gap up (even though it didn't look like that at all last night in the futures market) and that we'd end lower creating a VERY specific daily candle called a bearish engulfing candle? Honestly, how often do I make that kind of detailed forecast over a weekend in which anything can happen.
Today Carl Icahn is getting the credit for sending the market lower, however these bearish "doom" prognostications have been coming from every corner and people a lot bigger than Icahn like Gross, there's been a steady stream of these, so many I don't even mention them, but today it was Icahn who sent the market lower even though we had a head fake move and expectation of a lower close-look at the charts from Friday.
Think about all of those nasty divergences and credit, the stealth accumulation in VIX futures and if nothing else, the Bollinger Band squeeze in spot VIX.
Even beyond all of that, think about the cycles like the one from 10/9 predicted more than a week in advance, the mini cycle predicted and the head fake move of the last 3-days.
Specifically today, the HYG post (which I just discovered didn't publish when it should have which might have been confusing when I referred to that post in later market updates today) showed the market was going down hill long before Icahn.
The name of the post alone was "Market Update: HYG Taking it Lower"
Take a look at the HYG post and you can see not only didi HYG take the market higher the 3 previous days in our head fake move above the range, but broke down hard leading me to predict that HYG was going to drag the market lower.
The point is, Icahn is just one in a long line of dozens, maybe 40-50 market mavens all warning the same, I even said I didn't like it and I don't.
Just tonight Jeremy Grantham says "
"The S&P Is Approximately 75% Overvalued; Its Fair Value Is 1100"
And... "The Current Credit Bubble is More Risky then 2008"!!! I could point you to 6 of these a day from CITI, or BlackRock, Pimco, former F_E_D officials etc, but it's Icahn.
In any case, the point is, we wouldn't be able to see a lot of what we see if there weren't smart money herding and a lot of that is caused by market manipulation which we talk about everyday, READ THE HYG POST FROM TODAY!
So here's the link to the "Market Manipulation" post on ZH...
Here are a few notes from the article that we talk about nearly EVERY DAY!
"Regulators are looking into whether currency traders have conspired through instant messages to manipulate foreign exchange rates. The currency rates are used to calculate the value of stock and bond indexes."
In part what they are talking about are the carry trades that manipulate the market higher overnight, do you remember my article about a week ago, "A Sad Day For the Market". I was sick to my stomach after they knocked the Euro down on no news in the middle of the night on no volume and used the carry trades to ramp the market.
This was the crazy, no news manipulation of the Yen to send all the carry pairs higher and to ramp Indexs Futures overnight.
The interesting thing is they tried it again last week and it didn't work at all, this is why I have been asking if there are any real ramp levers left, even Central Bank jawboning isn't working.
Also from the article...
"And in the latest news on manipulation, according to the FT, "The UK’s financial regulator is probing the use of private accounts by foreign exchange traders amid allegations they traded their own money ahead of clients orders,"
No matter how it's done, it's called "Front Running" the market or a client's order, they call GS the "Vampire squid" as it is said GS puts out rec'd and then trades the opposite side of their clients, WE KNOW THEY DO IT WITH PUBLIC REC'D THEY MAKE, WHAT IS IT NOW, 9 IN A ROW THAT HAVE ALL STOPPED OUT?
GS isn't that stupid, it''s just a different form of front running that's not exactly illegal, just GREY.
Enjoy the article, this is why with 3C, "If you can't beat them, follow them"
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