Which Way Wednesday – Finally Fed Up?

Posted on the 18 June 2014 by Phil's Stock World @philstockworld

It's a Fed day today!

That, of course, means MORE FREE MONEY and the markets are giddy with anticipation ahead of the meeting – especially since we had more poor housing data yesterday and that's exactly the kind of bad news that is good news as it keeps the Fed in easy-money mode a little longer.  

As you may have guessed, we shorted oil this morning.  The July contract (/CLN4) expires on Friday and, as you can see from the chart, we continue to find great profits in the sell-off that we predicted would come last week.  We went over some Futures Trading Tips in yesterday's live Webinar as well as the new, bullish positions we've added to our Long-Term Portfolio.  Much as we rail against what we firmly believe will ultimately be a disastrous policy – you simply can't fight the Fed and we're not trying to – it's much more profitable to go with the flow. 

Going with the flow is exactly what we're doing with our oil trades as they STILL have 103M barrels worth of FAKE orders open for July delivery (actually, about 20M will actually be delivered so "only" 80M are fake at the moment) and that is down from the 172M FAKE orders that were open on Friday morning (see chart on Friday's post).  

Click for
Chart Current Session Prior Day Opt's

Open High Low Last Time Set Chg Vol Set Op Int

Jul'14 106.60 106.97 106.40 106.68 08:11
Jun 18


 

-
0.32 17840 106.36 103739 Call Put

Aug'14 106.06 106.47 105.87 106.17 08:11
Jun 18


 

-
0.30 20559 105.87 290190 Call Put

Sep'14 105.20 105.56 105.03 105.33 08:11
Jun 18


 

-
0.31 5338 105.02 180387 Call Put

Oct'14 104.14 104.42 103.93 104.25 08:11
Jun 18


 

-
0.34 2232 103.91 117243 Call Put

The total open interest (745,000 contracts) has not changed much since since Friday (712,000 contracts) – all they are doing is rolling the July Fake Orders to August, Sept and Oct Fake Orders to keep up the illusion of demand.  This despite the fact that US Commercial Crude Supplies are at an ALL TIME HIGH 399.4Mb and, if you think Iraq supply concerns are to blame – you are wrong there too as a report released YESTERDAY shows 2.8Mb of oil being exported in July – that's UP 11% from this year's average.  

It's a scam and we know it's a scam and we can make money playing off the fact that we know it's a scam becase we know all their tricks.  As I noted last week, we prefer the Robin Hood side of the trade – taking advantage of the greed of the manipulators rather than the foolish retail traders who stand in their way but we're not completely disinclined to play the upside, when the play is obvious.  

Today we're more focused on the Ponzi Scheme the Fed is running but, as we noted yesterday (and the day before), they are only one of dozens of Central Banks pumping up the Global Economy and enriching the top 0.001%.

 Yesterday we added ABX ($17) to our Long-Term Portfolio as we're seeing the gathering storm of Global Infation begin to take hold – even while the Central Banksters tell you they must fight DEflation as an excuse to flood the economy with even more money.  Well, not the econonomy – just the top 0.001%.

IN PROGRESS

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This entry was posted on Wednesday, June 18th, 2014 at 8:36 am and is filed under Immediately available to public, Uncategorized. You can leave a response, or trackback from your own site.

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