DrStool 259 Posted February 11 Report Share Posted February 11 Need I say more? You know what it means. Here's the expanded 2 hour bar chart. Allow yourself to see the big picture. Click to engorge. Zooming in to one hour bars, the uptrend is slowing, but it is still an uptrend. I have no projections yet on the 2-3 day or 5 day cycles, but the target of this current rally would appear to be 3930, i.e. a test of the high. The Latest from Liquidity Trader - Primary Dealers are Already Dead 1 - LIQUIDITY TRADER FEBRUARY 11, 2021 Back in 2008-2009, I chronicled how the Primary Dealers caused the stock market crash. They were the most important and least recognized cause of what the media has labeled the Great Financial Crisis. The dealers were overleveraged and positioned wrong then. They are overleveraged and positioned wrong today. It’s not that they choose to be wrong. While greed, stupidity, and even criminality are definitely involved, they’re actually forced to be wrong by virtue of their role as market makers and Primary Dealers. When their biggest clients, in particular the US Government, are all on one side of the trade, the dealers must, by definition, take the other side. Unfortunately, they get increasingly reckless when they do. Even more unfortunately, they almost never face consequences when they do. It’s called moral hazard. And the Fed is happy to enable and promote it. Of course, there’s an important difference between 2008 and now. In 2008, when that crisis was at its peak, we did not already have the massive flow of money that the Fed steadily pumps into dealer accounts. The Bernanke put, which became the permanent Fed put, did not exist yet. The Fed didn’t start QE until November 2008, well after the crash was in full swing. It did not start direct Primary Dealer QE until March 2009. Today, QE is a given. Today we have constant, permanent QE. The Fed now has no choice. Its constant bailouts have engendered ever larger bubbles, and ever greater reckless behavior. Because of that the system has collapsed. It looks the same as the old system on the surface. But it’s not. The dealers are no longer independent business entities. They are now fronts for the Fed. They are merely conduits for getting the new money into the markets and the banking system. Despite that, now, the dealers are again on the verge of precipitating another crash. Subscribers, click here to download the report.` KNOW WHAT’S HAPPENING NOW, before the Street does, read Lee Adler’s Liquidity Trader risk free for 90 days! Act on real-time reality! 5 Mining Picks Ready To Swing as Gold Holds 3 - GOLD TRADER FEBRUARY 10, 2021 Support was attacked and held in both the metal and the miners. Here are 5 mining picks that look ready for a swing. Subscribers, click here to download report. Try Lee Adler’s Gold Trader risk free for 90 days! Proof of How QE Works – Fed to Primary Dealers, to Markets, To Money 1 - LIQUIDITY TRADER FEBRUARY 9, 2021 There’s so much confusion out there about how money gets from the Fed into the stock and bond markets. I see the comments in my Twitter feed. People are clueless. Like how M1 is causal. Or how the Fed pumps money into the banking system and that doubles back somehow to speculative bubbles. The amount of ignorance out there is annoying. Other than you and your fellow subscribers, I just can’t get anyone to pay attention to the facts. So, let’s talk about the confusion around QE cause and effect, with financial bubbles and money supply. And let’s get to the point. The proof of how QE actually enters the banking system AFTER it gets pumped into the markets, not before. The point is that the Fed is deliberately pumping up the markets first, as a lever to accomplish whatever it is that it wants to accomplish. Which I surmise is to keep their clients from going bust. Which they should have, many times over. Subscribers, click here to download the report.` KNOW WHAT’S HAPPENING NOW, before the Street does, read Lee Adler’s Liquidity Trader risk free for 90 days! Act on real-time reality! Mealy Mouthed Technical anal cyst Gets Punched in The Mouth 2 - TECHNICAL TRADER FEBRUARY 7, 2021 Mike Tyson famously said, “Everyone has a plan until they get punched in the mouth.” OK, so the market didn’t quite punch us in the mouth last week, but it did lull me to sleep last weekend. No worries. This week, there were so many charts with buy signals, I’m going all YOLO. Technical Trader subscribers click here to download the report. If you want to join the fun and see the 15 new stocks on the list, click below. Not a subscriber? Follow Lee’s weekly swing trade chart picks with Lee Adler’s Technical Trader, risk free for 90 days! These reports are for informational purposes, aimed at a broad audience of investment and trading professionals, and other experienced investors and traders. Chart pick performance changes week to week and past performance may not indicate future results, as you know. Trading involves risk, and these reports assume that you understand those risks and manage them according to your tolerance. Link to post Share on other sites
The Latest from Liquidity Trader - Primary Dealers are Already Dead 1 - LIQUIDITY TRADER FEBRUARY 11, 2021 Back in 2008-2009, I chronicled how the Primary Dealers caused the stock market crash. They were the most important and least recognized cause of what the media has labeled the Great Financial Crisis. The dealers were overleveraged and positioned wrong then. They are overleveraged and positioned wrong today. It’s not that they choose to be wrong. While greed, stupidity, and even criminality are definitely involved, they’re actually forced to be wrong by virtue of their role as market makers and Primary Dealers. When their biggest clients, in particular the US Government, are all on one side of the trade, the dealers must, by definition, take the other side. Unfortunately, they get increasingly reckless when they do. Even more unfortunately, they almost never face consequences when they do. It’s called moral hazard. And the Fed is happy to enable and promote it. Of course, there’s an important difference between 2008 and now. In 2008, when that crisis was at its peak, we did not already have the massive flow of money that the Fed steadily pumps into dealer accounts. The Bernanke put, which became the permanent Fed put, did not exist yet. The Fed didn’t start QE until November 2008, well after the crash was in full swing. It did not start direct Primary Dealer QE until March 2009. Today, QE is a given. Today we have constant, permanent QE. The Fed now has no choice. Its constant bailouts have engendered ever larger bubbles, and ever greater reckless behavior. Because of that the system has collapsed. It looks the same as the old system on the surface. But it’s not. The dealers are no longer independent business entities. They are now fronts for the Fed. They are merely conduits for getting the new money into the markets and the banking system. Despite that, now, the dealers are again on the verge of precipitating another crash. Subscribers, click here to download the report.` KNOW WHAT’S HAPPENING NOW, before the Street does, read Lee Adler’s Liquidity Trader risk free for 90 days! Act on real-time reality!
5 Mining Picks Ready To Swing as Gold Holds 3 - GOLD TRADER FEBRUARY 10, 2021 Support was attacked and held in both the metal and the miners. Here are 5 mining picks that look ready for a swing. Subscribers, click here to download report. Try Lee Adler’s Gold Trader risk free for 90 days!
Proof of How QE Works – Fed to Primary Dealers, to Markets, To Money 1 - LIQUIDITY TRADER FEBRUARY 9, 2021 There’s so much confusion out there about how money gets from the Fed into the stock and bond markets. I see the comments in my Twitter feed. People are clueless. Like how M1 is causal. Or how the Fed pumps money into the banking system and that doubles back somehow to speculative bubbles. The amount of ignorance out there is annoying. Other than you and your fellow subscribers, I just can’t get anyone to pay attention to the facts. So, let’s talk about the confusion around QE cause and effect, with financial bubbles and money supply. And let’s get to the point. The proof of how QE actually enters the banking system AFTER it gets pumped into the markets, not before. The point is that the Fed is deliberately pumping up the markets first, as a lever to accomplish whatever it is that it wants to accomplish. Which I surmise is to keep their clients from going bust. Which they should have, many times over. Subscribers, click here to download the report.` KNOW WHAT’S HAPPENING NOW, before the Street does, read Lee Adler’s Liquidity Trader risk free for 90 days! Act on real-time reality!
Mealy Mouthed Technical anal cyst Gets Punched in The Mouth 2 - TECHNICAL TRADER FEBRUARY 7, 2021 Mike Tyson famously said, “Everyone has a plan until they get punched in the mouth.” OK, so the market didn’t quite punch us in the mouth last week, but it did lull me to sleep last weekend. No worries. This week, there were so many charts with buy signals, I’m going all YOLO. Technical Trader subscribers click here to download the report. If you want to join the fun and see the 15 new stocks on the list, click below. Not a subscriber? Follow Lee’s weekly swing trade chart picks with Lee Adler’s Technical Trader, risk free for 90 days! These reports are for informational purposes, aimed at a broad audience of investment and trading professionals, and other experienced investors and traders. Chart pick performance changes week to week and past performance may not indicate future results, as you know. Trading involves risk, and these reports assume that you understand those risks and manage them according to your tolerance.
DrStool 259 Posted February 11 Author Report Share Posted February 11 Sorry, but I gotta ask. Is the market open? Link to post Share on other sites
Jorma 51 Posted February 11 Report Share Posted February 11 43 minutes ago, DrStool said: Sorry, but I gotta ask. Is the market open? Market? Link to post Share on other sites
DrStool 259 Posted February 11 Author Report Share Posted February 11 For want of a better word. Link to post Share on other sites
MisFit Kid 46 Posted February 11 Report Share Posted February 11 50 minutes ago, DrStool said: Sorry, but I gotta ask. Is the market open? Is that a ___________ Question? a) rhetorical b) Zen-Like c) Pull-My-Finger d) Confucius e) magniloquence f) orwellian g) sine qua non h) bored to tears Z) All of the above >: i) tchotchkes Link to post Share on other sites
DrStool 259 Posted February 11 Author Report Share Posted February 11 Z to the ith power. Link to post Share on other sites
PullMyFinger 15 Posted February 11 Report Share Posted February 11 28 minutes ago, MisFit Kid said: Is that a ___________ Question? a) rhetorical b) Zen-Like c) Pull-My-Finger d) Confucius e) magniloquence f) orwellian g) sine qua non h) bored to tears Z) All of the above >: i) tchotchkes Wait--the question was for me? 🤓 Link to post Share on other sites
DrStool 259 Posted February 11 Author Report Share Posted February 11 Last few days the market has become a little airpocketty. Link to post Share on other sites
MisFit Kid 46 Posted February 11 Report Share Posted February 11 Everyone was waiting for the "Bumble" IPO. A dating app "growth story" worth Billions, now........ Link to post Share on other sites
DrStool 259 Posted February 11 Author Report Share Posted February 11 There's a lot of pent up dating demand. Link to post Share on other sites
DrStool 259 Posted February 11 Author Report Share Posted February 11 I have no feel for this market today. I honestly don't know what to expect next. Seems like change is a comin, huh? Link to post Share on other sites
DrStool 259 Posted February 11 Author Report Share Posted February 11 The right shoulder here is higher than the left. I honestly can't recall the last time one of those broke down into a sustained decline. The higher right shoulder has been a signal that the breakdown, if any, would be immediately reversed and lead to higher highs. I must say, this feels different. So we'll see. Link to post Share on other sites
DrStool 259 Posted February 11 Author Report Share Posted February 11 Link to post Share on other sites
DrStool 259 Posted February 11 Author Report Share Posted February 11 Appears to be taking a bead on 3867. Link to post Share on other sites
MisFit Kid 46 Posted February 11 Report Share Posted February 11 3 hours ago, PullMyFinger said: Wait--the question was for me? 🤓 maybe, if nothing else, that makes one vote for z and one vote for Pull-My-Finger 😄 there are still mail-in ballots to count.......😵 Link to post Share on other sites
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