If Zero Becomes Prohibitive Favorite

Trend confirming models, (confirming the UP), rolled over in March and April.  Greece is the possible event action which becomes the weak link revealing some of the structural price soft spots created by central banks interventions. Chasing greater returns works until the price action is negative enough to establish cash, (zero return), as a prohibitive favorite.

Central Banks Buy Indexes To Support World Markets

Sovereign buy programs supporting market today as they apply the short squeeze to all those to challenge central bank authority.  Index futures are the easiest target as central banks support the indexes and to soften the impact for the other leg of the trade which is to be the raising of U.S. interest rates.    It is all positive on prices as long as the buying continues because the rest of usual buyside pools are empty.

Greece Markets

Markets waiting for Greece to be 'enabled' again, after all it is no different from the Fed bailing out an entire generation at the top under the guise it is best for everyone.   Bernanke and Yellen some how see their efforts as courageous acts saving the economy but they are really nothing more than supports for a broken system which not surprisingly provides excessive relief to the privileged.  Risk has been identified as any negative deviation from a positive equity curve.  Such power given central bankers who have achieved great career success by simply showing up everyday without ever taking any risks.  Risk voyeurs.

The landscape is rapidly changing for all human inhabitants.  Totally connected all the time is bringing forth specialized skills and minimized opportunities.  Markets have long gone from open outcry to electronic trading, except for some options markets which may confirm to many that those markets are useless.  Traders now circle the action online at various speeds but there are only two speeds really; hyper speed and everything else. Trading shops 'Quanting Up' to build competitive strategy teams which end up resembling bad sports clubs marked by occasional wins but primarily mediocre performances.

CNBC is proof, because who else would watch it, that there are enough online trading participants using badly canned trading and analytics platforms who enjoy listening to folks bark like a carnies using information bias which have to be used only as a daily fade.  

   

More Than A Correction

Markets trying to fight off recent sell-off.  This has been the first time this year where stock indexes are selling off with trend indicators turning to a negative bias hinting at more than a correction but the beginning of a major move downward.   AAPL one of the first to indicate negative trend warning.


Last Friday's CoverRisk.com data.

AAPL Trend Indicator/ Down

Call Veracity YTD

23

Call Veracity Run 2008 – Present

113

Event Price

57

Weekly Close

128.65

AAPL YTD

18

Run Performance 2008 – Present

100