As noted by Dave Fry, Friday's jobs report was bad – and that's good, isn't it? We need bad news to put an end to all this taper talk so the Dollar can continue to devalue almost as quickly as the Yen and Emerging Market currencies can stop collapsing and control their skyrocketing inflation caused by high commodities prices due to the Fed's easy-money policies. Get it?
It's one of those serpents eating its own tail kind of things that you know so well, we don't even need a picture, do we?
What we do need pictures of is the S&P and we had a huge volume spike into the close but, strangely, it did not move the market higher – that's not really a good sign – it just means all the people who pretended to be interested in buying the S&P up from 1,178 to 1,180 took the money and ran from the ETFs that were forced to buy at at market on close prices.
That is how they screw all the suckers who put their money into IRAs and ETFs, who are forced to buy on close at the end of each day, usually at whatever prices the Banksters want to dump the shares at (hence all those big rallies in the last 15 minutes) – that's why Banksters spend so much time and effort convincing you to buy IRAs, 401Ks, ETFs – anything that does the buying for you (on their schedule)!
As you can see from Dave's 3 S&P studies – it's all a matter of perspective. Our Members have been singing "Head and Shoulders" for over a week now, though, as this pattern was pre-ordained by our 5% Rule™ long before it showed up on the charts.
As I said back on January 28th:
This does not change our 5% Rule's™ ranges at all – these are just the very short-term moves we need to see in order to start pulling back our bearish bets (long in place) and begin to consider
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