This mornings trade might best be exemplified by the uncloaking of capitalisms invisible hand. Except its not capitalisms hand at all that lost its cloak, its the Systems. Yep, the system has an invisible hand, and its holding a pair of tweezers. Tweezers have become the instrument where by, 5 positive news items must be sold, under the rules of cap and control.
The system does not like competition, and thusly it functions to purpose. Within the context of an average portfolio, there are always some up and some down. But in portfolios with above average Forward Demand, system interests collude to another purpose. Cap and Control.
Cap and Control is an outcome based derviative of social engineering. As system interests consider themselves superior, and system goals must be sustained to uphold system longevity, cap and control is the methodology by which this primary goal is achieved.
Within the SIP family of securities, we monitor volume of free floats that are scarce, compared to the broader market. SIP companies are selected on the basis of fundamental forward demand, where capital flows to the edge ahead of change in the economic calculation of forward demand.
As capital flows out to the edge in anticipation of change, those whose money was their first, get subjected to the most tribulation as the self preservation goal of the System overrides the neccessity for Capitalisms invisible hand to work its magic.
In other words just like Supply and demand are routinely suspended, so too is the markets function of valuation left to the whims of an invisible hand holding tweezers as its primary tool.
This effort is seen everyday across the SIP and our penchant for counting makes it abundantly clear, that Systems interests are goal centric in the sense that proper valuation will always be delayed until System interests have taken a reasonable share of scarce supply.
Let this piece be the first in a series of 07 lessons. We'll update and demonstrate other features of this complex we'll call; Social engineering of outcomes at the margin. |
