Tag Archive for Bernanke

Sorry Hedgephone Was MIA This Week…

Sometimes it seems like you are in the waiting room at the DMV for half of your life… (in some places this is really how it is in real life…) Even the most liberal anti-austerity Dem has felt the slow rot of the DMV waiting line at least once or twice.

Thankfully, the good folks at the MVD Express in NM (a private company btw) will speed things up for you for a small fee… In other states you may have to spend months waiting to smog your work truck.

In any event, my excuse for this week’s relatively small blog post fare at Hedgephone is clearly not my severe recurring writers block (complete with headache and the shakes) or the incredible fear that comes from having a few dedicated regular readers (I love you guys, btw). No, I’m sticking with long DMV wait times and dealing with traffic tickets. Working a regular job has its benefits but for an aging hipster like me it’s taxing sometimes to find the energy to bark to you all about how slimy the stock market Ponzi party has become.

We won’t snitch (whether its dry snitching, wet snitching, or anonymous snitching) at Hedgephone. Calling out white collar corporate ponzi-people is different because they aren’t gangster at all, they are usually cowards acting out of greed and jealousy — ie Ponzi people are player haters. Eminem called the cops when his car was stolen. America was stolen, but we just blog about it because the cops don’t get it and will simply think you are crazy. Kinda like this guy who decided to snitch on himself:

Btw, because fraudsters and con artists are a lot like child molesters as they violate their victims — eventually people in prison will figure out that thieves aren’t real gangsters… For now, the white collar jerks are looked at like mafia men and not sexual predators, which is a much better analogy.

Some new things are brewing here and we may have some cool guest blogging ops coming up, so don’t worry I’m not dead or in county or the pen (at least not right now as writers block is still not a crime) and Hedgephone.com lives on — next week our theme will be about avoiding the overvalued stock market without making a stink about it too publicly. We will let someone else create a (completely deserved) market panic. I feel like some of the other sites aren’t as compassionate in their assessment of the situation. In America we are served up a piling heap of bullish stock market gruel for breakfast, lunch, and dinner on a small plastic tray with a tiny carton of milk and a plastic spork. We are then ordered to “buy buy buy” because there has never been a better time to “go long” than right now.

The stock market is our new centrally planned reality grid, and it has become way more central to the lives of Americans than ever before — a nation of sick degenerate stock gamblers indeed. Consider Hedgephone your stock trading addiction therapy session. Let it go down ten percent and then take another look.

For contrarians out there like me, it’s hard to sit on your hands and whistle Dixie when both Alan Greenspan and Ben Bernanke both go on T.V. (your centrally planned reality box) to say that stocks are cheap in the same one week period. If history is any guide, now is the time to start seriously bugging out, but like I said, we’re better than that at Hedgephone 2.0…… Growing up a little bit finally, plus the whole nation is sorta long right now (scary ain’t it). Look, America will let evil men in suits steal everything so long as they don’t miss The Voice or Dancing With the Stars. While I don’t blame the victim, the outcome isn’t pretty.

One thing I have learned over the past week is that being honest with people in the system actually works. There are good people even in shady places or circumstances. Some thieves even have feelings of remorse occasionally. Most of them have already spent the money they stole or went to prison for their crimes, unless of course they robbed a public corporation or committed accounting fraud at a public company. It takes a sociopath to rip off shareholders the way it commonly happens on Wall Street. Sociopaths move up the ladder pretty quickly it seems, but they never find true happiness.

10 Ways To Notice You are Living in a Corporatist Society

1. The stock market is being mandated upward by central planning

2. The rising stock market is benefitting corporations

3. When the stock market falls 30% companies fire everybody, then get taxpayers to pay off corporate debts

4. Jim Cramer is still on CNBC even after telling everyone technology stocks were a buy in 1999 on air

5. You are going to be forced to buy health insurance from a private corporation by the government, while you already are forced to buy mandated car insurance or go to jail

6. If you cannot afford a good lawyer, you do five or six times the amount of jail time as you would if you retained the top dawg

7. Stock market bears are extinct and labeled heretics. Pretty soon stocks will be disallowed from going down

8. No one remembers the flash crash, but everyone is long out the wassoo and on margin, again

9. Jack Lew the new Treasurer ran a bunch of departments at Citi which were selling bad derivatives to people and basically robbing the piss out them but he’s touted as a progressive

10. You actually believe that Dow 36,000 is right around the corner

Markets Keep Bouncing…

Stocks are still rallying behind optimism for continued stimulus, and maybe this optimism is warranted. Certainly, we would hope that Dr. B still has bullets left to fire because we think the great “Man-Cession” which has morphed into “The War on Women” will continue for some time. Either way, according to a news release Americans have lost some 39% of their wealth since the start of the financial arse-raping that was the “financial crisis” (read organized banking takeover/power grab of the economy).

Nevertheless, the stock market is nearing those pre-2008 levels again. We think that $1350, $1375, and $1400 are support/resistance levels for the S&P 500 at current levels. We think that these levels will hold for now, but you never know we may see continued rallies based on Bernankulus money printing and the fear of more liquidity.

Today’s Dollar Drop Puts a Bid Under Stocks

But what does it mean for Americans? It means that our standard of living dropped by 1% today as inflation is now the greatest hidden tax on our citizens. When our government (or the bankers who actually control it) acts irresponsibly, the dollar drops because the FED has to print money to fund the deficits. The bottom line is that stocks are a crappy investment but they are better than cash. For my dollar, I would look at Canadian Dollars, Timberland, Singapore Dollars, Chinese Remnimbe, Gold, Silver, the RJI, etc…

It seems that the US greenback is slowly becoming about as worthless at this point as the paper it’s printed on, but forested land is a good hedge because the demand for paper is insatiable thanks to Just for Men Ben Bernanke and his sweaty print finger. It’s time to hedge your currency risks, but try not to buy stocks and instead buy stuff (IE hard assets).

Bernanke’s Bounce

So here we go… as I said in premarket, I am not feeling too solid about the short side so look to hedge your bubble shorts (aka LNKD et al) with some GOOG, ORCL, MSFT, INTC, etc… etc… here but be ready to turn on a dime… 100 day MA and 50 day MA look to be in play (AGAIN) — yes, this is what we like to call the “Blow Up the Trend Follower” HFT computer program Chop Festival of trading, AKA Buy Dips and Short Rips…

Makes you seasick no? In any event, look for the action to continue but keep that 50 and 100 day Moving Average on your screen — I use the simple MA but some may use the simple and exponential… This definitely hurts new to the party shorts here as they had to cut long losses yesterday and shorted at the close of trading…. eeeeeeeeeeeeeeeeeeeewwwwwwwwwwwwwwwww………..

Lots of reasons for the bounceage but the main one is El Bernankenstein’s POMO experiment no doubt… Look for some stocks that traders can rationalize as being bubble type names to buy because as my grandmother used to say “everythings goin to the internet” — it’s not too complicated really, but you want pairs trading techniques here if we can’t break the 50 and 100 day…

Stochastics and RSI look oversold, I would not be suprised in yesterday was simply ANOTHER bear trap in the short term… Longer term without QE3 I think the it’s hard to bet on a further rally for Ye Old IWM AKA RUSSELL 2000 AKA Bernanke’s main indicator of the health of the economy and favorite day trading vehicle…

All the best! AND GOD BLESS AMERICA….