Short Squeeze Or Dead Cat Bounce

I must be alone in the world in explaining that the financial markets are not just rigged overall but on a second by second basis. Today;s rally is being explained as being a short squeeze or a dead count bounce. It is neither.

This is an organized effort to restart and maintain the bull market. If the ALGOS can make a snake, they have substantial control over the market. So, they do in fact still have plenty of control over the market. ‘

To accomplish this task, a low volume atmosphere must be maintained. Long term holdings must be kept off the market. How are long term holdings kept off the market. All it would take is phone calls explaining to potential sellers that prices are going up. The word is, you will get a better price. We will see to it that you do.

Have you ever seen a true short squeeze? With a short squeeze, the averages would not gap up and then stay in a consolidation pattern for the balance of the day and then resolve upward at the end of the day.

As of yesterday, still, only 14 percent of stocks were above their 200 day moving averages. This is not a dead cat bounce because only a few stocks are actually bouncing. A handful of stocks are rocketing.

From here on, the market will rise as much as it is possible to make it rise.

With respect to market manipulation, the consortium doing the managing knows you a lot better than you know them. They are also far more intelligent than I am.

One thing that is generally not recognized is that they have enough buying power to move the market based on their own buying power. As they are successful in doing this, they have nothing to lose as long as the market doesn’t go down. One unrecognized aspect is that there is an ongoing effort to consolidate asset ownership among a handful of elites.

So, how long will this new chapter last? It will last as long as they can make it last.  When the effort fails, that is when it all collapses.  I am not counting on that happening today, but who knows? Chances are that it will look like the averages are about to collapse for the entire trading day. But, at the close, there will be a rally. Goal one is to close at the high for the day. If that doesn’t work out, then the goal is no black candles. For sure, the market must not be down for the day.

As long as there isn’t a complete collapse, trading will begin in the morning with a new and improved plan. Look for low volume for the foreseeable future. Look for the averages to be slowly ratcheted  higher over time. We have all seen this game plan before. Despite the negatives, this can go on for a mighty long time.

 

 

 

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About Fantasy Free Economics

James Quillian independent scholar,free market economist,and teacher of natural law. Who is James Quillian? Certainly I am nobody special, Just a tireless academic and deep thinker. Besides that, I have broken the code with respect to economics and political science. Credentials? Nothing you would be impressed with. I am not a household name. It is hard to become famous writing that virtually no one in the country is genuinely not in touch with reality. But, if I did not do that, there would be no point in my broking the broken the code. If you read the blog, it is easy to see that there are just a few charts, no math and no quantitative analysis. That is not by accident. Given what I know, those items are completely useless. I do turn out to be highly adept at applying natural law. Natural law has predominance over any principles the social science comes up. By virtue of understanding natural law, I can debunk, in just a few sentences , any theory that calls for intervention by a government. My taking the time to understand the ins and outs of Keynes General Theory is about like expecting a chemistry student to completely grasp all that the alchemists of the middle ages thought they understood in efforts to turn base metals into goal. Keynesian theory clearly calls for complete objectivity. Government can only make political decisions. Keynesian techniques call for economic decisions. So, why go any further with that? Fantasy Free Economics is in a sense a lot like technical analysis. Technical analysis began with the premise that it was impossible to gain enough information studying fundamentals to gain a trading advantage. Study the behavior of investors instead. Unlike technical analysis, I don't use technical charts. What I understand are the incentives of different people and entities active in the economics arena. For example, there is no such thing as an incentive to serve with life in the aggregate. In the aggregate, only self interest applies. It is routinely assumed otherwise. That is highly unappealing. But, I am sorry. That is the way it is. I can accept that because I am genuinely in touch with reality. Step one in using Fantasy Free Economics is for me to understand just how little I really know. A highly credentialed economist may know 100 times what I do based on the standard dogma. Compare the knowledge each of us has compared to all there is to know and we both look like we know nothing at all. There is always more than we don't know than what we do know. I am humble enough to present myself on that basis. Why? That is the way it is. I am not bad at math. I have taught math. What I understand is when to use it and when to rely on something else. Math is useless in natural law so I don't use it. While others look at numbers, I am busy understanding the forces in nature that makes their numbers what they are. That gives me a clear advantage.
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