Drawing in Shorts to Goose the Stock Market

aThe stock market is vulnerable.  What can be done? First publish multiple articles about how bad the economy is. Make it obvious that now is the time for the market to drop. Draw in as many short sellers as possible. Then squeeze them into covering with friends of the Fed buying with countless free dollars. The article below is one of those articles. Don’t short when stories like this show up on Yahoo Finance and other outlets.

http://www.businessinsider.com/earnings-season-warnings-for-economy-2016-7

But, notice the green index at the bottom of the chart. The green index is simply the percent of total etf volume divided by total non etf stock volume.  Normally before a new up leg is orchestrated, etf volume surges as the elite who are fed information about central bank plans in return for their help, load up on bullish derivatives.  Normally this index is in a valley before the market drops. When central banks have bought  heavily enough, in the past they have been able to turn the market regardless. Notice the level at February of this year.  The rich are trying to get a criminal elected president of the United States. This is a critical point in their timeline.

I believe that beginning Monday, the Central Banks will be in the up no matter what mode.  There are two possible outcomes here. It can work for a while or this could be the time when Mob cuts and runs. In a free market setting no one in his right mind would touch a stock in this situation. Remember, organized crime is running the financial markets. There is not much relationship here to genuine economic issues such as the ones in the link.  I did think the market would tank last week during the Democratic Convention. I still think we are close. The economy is being destroyed. Only the central banks can keep the market up. It could go on like this until the whole system fails. Don’t think the mob hates you. This is not personal. It is more like you are collateral damage.

 

 

 

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About Fantasy Free Economics

James Quillian is an independent scholar,free market economist, teacher of natural law, teacher and originator of the Fantasy Free approach to economics. James Quillian does not believe lies. Contact: news@quillian.net
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