What is misunderstood about the stock market is an almost universal lack of understanding of what actually causes it to move higher and why there is seldom a correction. Countless highly intelligent analysts base forecasts on both technical and fundamental analysis. Hedge funds base their decisions on what has always been useful in prior days. Hedge funds are losing.
The stock market will not go down just because supply is greater than demand. If profit and loss were all that mattered, trading patterns would not look the way they do. The averages gap up almost every day. The opening almost always runs into supply. Then prices are stabilized until near the close. The goal, then becomes, to close the averages higher, regardless of what happens during the body of the trading day. If that doesn’t work, the secondary goal is to make sure there is no black candle for the day, If that can’t be done, then make sure it closes up for the day.
From time to time, the market does sell off. In that case the consortium returns the next trading day with more ammunition. Good news is announced. Shorts are squeezed and here we go again.
The market doesn’t drop because its advance is being orchestrated. The group orchestrating the manipulation, has economic power, wealth and political power out of proportion to everyone else put together. With every passing day, the supply of stock becomes more and more concentrated into the hands of the most powerful people in the world. What we are seeing is the effort capture and control the world’s factors of production. The stock market is a big part of it. Wars for profit are of the same nature.
Traders, professional and amateur alike are still blaming the market’s resilience on normal economic influences. These influences are real. They are just outweighed by the forces managing the market and the goal is to gain control of the stock prices permanently. The public has sunk into a state of accepting super low rates on savings and taking enormous risks in order to get a little higher return. A fraction of 1% of the population has found a way they believe they can control the value of everything they own and allow them to dictate not just what other’s investments earn, but what those investments are.
This is not a bubble. Dotcom was a bubble. The public was euphoric. The public, if at all, is indirectly invested in the market. Most are not. Analysts are still treating this as mostly a market but it is rigged to go higher no matter what. The goal is not financial profits in the immediate time frame. The goal is the capture and control of the equity markets worldwide and to continue controlling them far into the future.
The market will eventually go down and a lot but it will be in the face of genuine economic failure. It will happen and the result will be life changing. The economy won’t recover because our free market system has been dismantled and replaced with our unique brand of top down socialism. It is impossible to say when the break will occur. Ordinary citizens will be the last to know. There is not one government statistic that is not embellished. The media is owned by the people who manipulate the market. Any truth about the economy will not be reported.
Last year I advised everyone to take the advance that began in December seriously and not treat it as a bear market rally. Whoever took heed of my advice back then is glad they did.
As it stands now, the manipulators are facing headwinds they are not used to. The new round of Q.E. is not as effective at elevating stock prices as were the earlier infusions. Regardless the organized support is ongoing and intensifying. They will buy outright rather than let the market fall.
An economic recovery which has occurred solely as a result astronomical asset prices will crumble if a bear market ensues. There is nothing so radical that it won’t be used to support stock prices. They will buy outright to protect what they already own. As long as volume remains light, they will mostly be successful. Declines don’t begin the way they are assumed to. The very top is likely to be at a point where volume dries up initially. The volume comes in as an initially mild decline accelerates. When that happens, all the ALGOS have to do is buy a few shares to stabilize prices so a sudden break to the downside is never likely.
When the bear market starts is not possible to determine given the enormous demonstrative effort being employed to push it higher.
All we know for sure is that the asset enhancement initiative will destroy the entire economy. It already has done considerable damage. For 2020 all I can say for certain is that the efforts to save the market will be astronomical. The world’s power structure can’t survive a bear market and they know it
.The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.