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2012/07/13

Still Rigged, Part 2

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Still Rigged, Part 2

NoCheating

Yesterday I said “You have often heard me say that the market is rigged, which it most certainly is via the Federal Reserve’s overall interest rate “engineering,” as well as outright manipulations through quantitative easing (QE), backdoor bailouts, POMO, massive swap lines to European banks, etc.  As you know, the banking mafia also rigged LIBOR interest rates for years that possibly cost cities, municipality, and state governments billions of dollars.”
 
I went on to describe how economic data is released to some before the public gets it, but today I am back to the Fed, and dogs; Pavlovian dogs to be specific.  Messrs Bernanke and Greenspan before him ring the bell, and Fraud Street is the Pavlovian dog.  
 
The following link and chart is not from a blogger, or a journalist, or a conspiracy group – it comes from the Fed itself.  To be specific, it comes from the business end of the Fed, which is the New York Federal Reserve Bank (NYFRB).  
 
By its own analysis the Fed is responsible for the S&P500 being 55% higher than where it should be.  Said another way, since the ES is at 1335.00, the real value of the market is just 600.00!  Well, that’s where it would be if the Fed wasn’t manipulating the market.
 
In the full report (link below) we read…We show that since 1994, more than 80 percent of the equity premium on U.S. stocks has been earned over the twenty-four hours preceding scheduled Federal Open Market Committee (FOMC) announcements (which occur only eight times a year)—a phenomenon we call the pre-FOMC announcement “drift.”
 
Read that again.  And again.  And again.
 
We read in the report that the Fed is “confused” by this “drift,” as they call it.  Why would they be confused at all?  The chart below not only shows the staggering results, but also shows approximately when the demand for “free money” began: the start of the epic Nasdaq bubble’s crash.  
 
From then on, Fraud Street knew it could demand whatever it wanted and would get it on the FOMC days.  Thus the “drift,” or the Pavlovian dog effect.

 
fed_chart
 
 
 
The full paper by the FRBNY can be read here http://libertystreeteconomics.newyorkfed.org/2012/07/the-puzzling-pre-fomc-announcement-drift.html
 
By the way, it’s not an odd “pre-FOMC drift.”  It’s straight-up rigged.

 
Trade well and follow the trend, not the so-called “experts.”
 
Behold the age of infinite moral hazard! On April 2nd, 2009 CONgress forced FASB to suspend rule 157 in favor of deceitful accounting for the TBTF banking mafia.

 

larrylevin@tradingadvantage.com
Trading Advantage
(888) 755-3846

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    Larry Levin's Trading Advantage is a leading investment education firm that empowers traders to achieve and surpass their financial goals. More than 50,000 students have used Larry Levin's proven techniques for powerful results.
 
 

Trading Signals from the Electronic (ES) mini-SP 500                              
  1. No “Secrets” signals today.
  2. Algorithm positions (11)
  3. “Reading the Tape” positions (3)combined Secret’s, Algo, &   “Reading the Tape” total… +3.25

 
 
 
 

 

 
Value Areas:
ES        1332.50 / 1322.50
POC... 1323.00
YM      12540 / 12448
NQ       2545.25 / 2525.25

 

 
   
 
 

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