The ahhaha perspective:
To: ahhaha (347 )
From: ahhaha Thursday, Sep 9 1999 11:38PM ET
Reply # of 349
A news item got ignored today. It was that import prices rose 1% last
month. The prejudice in the stock market is amazing. The shorts are
scared of non-events and ignore big negatives. Increasing import prices
raise the compensation leverage of domestic labor. One can blame it on
the dollar with the cavalier attitude that the market already knows, but
the players don't assume there is upward pressure on labor cost from
this. The dollar translates import prices, but it isn't the retail pass
through which is the negative, rather, it is the labor effect.
Also today aside from the usual ambiguous disinformation efforts by
various fed presidential stooges, our boys in the four columned building
did a coupon pass. That in itself has become the norm. After all, we
expect a lot of production from those boys. Today, though, it came at an
unusual time. The DOW and other averages were setting up to make a nasty
down side plunge, but just then, our boys came in with the fix and
everyone was happy.
They know the market wants to go down big and so they have to keep it
propped because it has become the machine of prosperity. They also know
they can influence that prosperity with less dough than it takes with
overt rate fixing. They have to shoot through the psychological
connection at the short interest, but that interest is sufficiently
large so that the stock market can be manipulated.
The institutions like this a lot because it is enabling them to
distribute stocks into the speculating public hands without too much
price concession. Thus, the FED is engineering the moral imperative.
They are punishing greed and helping prudence. When this gets around the
whisper circuit there will be an acceleration of activity as the less
informed try to extract themselves protectively. The outcome
historically has been snowballing avalanche.
The FED knows it and hates it, but they got to get it down somehow, so
gradually will be attempted. Of course, that will bring about the
greatest grief, because if I know it, so do others. They all are
watching the door more and more closely. They see the Trannies and Utes
locked in major down trends wildly diverging from the industrials with
the breadth worse than it has been in all history, and old reliables
like AHP making a breakout down side gap. KO breaking its major uptrend
and neckline. DIS double topped and headed drearily down, and F
preparing for the plunge to the neckline from where it will proceed
horribly down during 2000. The FED doesn't need to get it down at all.
It's moving there inexorably while the patzer public toasts the roar of
crowds.
Message 11207673 |
