Establishment Media Trying To Push The Stock Market Down

MarketWatch is REALLY trying to push the stock market down and Google has given them a prominent position in their search engine results to do just that. Check out what the search “stock market news” outputs from Google search:

Whatever happened to the “fake news” filter Google was going to start using?

Google features this fake news story from MarketWatch at the top of their search results:

You can read the entire fake news story about the Hindenburg Omen here.

The Hidenburg Omen is one of the most inaccurate market timing tools to ever exist. Its track record of false signals should delegate it to your trash bin. But even if you ignore this fact and actually want to use the Hidenburg Omen indicator, it’s not giving a signal right now.

This is a fake news story because the Hidenburg Omen is NOT back. The company that owns the WSJ and MarketWatch is trying to manipulate you into thinking we have a Hidenburg Omen signal because they know you’re too stupid to fact check them IMO.

The Hidenburg Omen does not give a signal until the $NYLOW:$NYTOT crosses above the red line while the $NYHGH:$NYTOT is above its red line at the same time. As you can see, we are no where near a Hidenburg Omen signal.

Establish Mainstream Media Push To Destroy Trump

A picture is starting to emerge that the big gambit of the Establishment mainstream media is to push down the stock market and attack President Trump at the same time.

What those who control the content on MarketWatch and the WSJ fail to understand is that they only discredit themselves the more they try and manipulate public perception.

Google Has Hopelessly Lost Its Way

Google rose to power off the backs of hard working entrepreneurs seeking to advertise over the Internet to compete with the rich and powerful that have controlled TV and newspapers for generations.

The Internet has always been, and will always be, a way for ordinary people to communicate ideas with other ordinary people without the interference of rich and powerful corporations acting as the medium of exchange.

Years ago, Google ditched the entrepreneurs that helped it rise to power and instead has cast its lot with the Establishment mainstream media.

Google Has Fully Transitioned Into a News Aggregation Service For the Establishment Mainstream Media

As Google search updates continue to be released every couple of months, one thing is clear, Google continues to make it harder and harder for ordinary people with alternative views to get web traffic from their search engine.

As Stock Traders We Have To See the News Behind the News

The Establishment mainstream media propaganda blasted across the Internet by Google is detrimental to your stock trading efforts. These publications will publish fake news reports like the Hidenberg Omen story above. They have an alternative agenda. Sure they sprinkle in a few stories here and there that may help you make money off a trade but their overall agenda is to destroy Trump and you and I are just collateral damage. Don’t be collateral damage from the false narratives in the mainstream media news. You have to question EVERYTHING and take nothing at face value because your trading profits depend on it.

Stock Market Correction and Waiting To Click The Buy Button

The stock market correction is likely going to push the S&P 500 to test its long-term rising trendline and support at 232.20. The bearish divergence on the Twiggs Money Flow likely signals that the pull back is not over yet.

Short-term stock market correction underway.

A few traders have asked me if now is the time to buy or if they should wait on the sidelines while the market pulls back. We all know that history does not predict future price direction nevertheless, it is useful to know what has and hasn’t happened in the past.

Looking at the last 110 years of stock market price action, the data reveals that waiting for a correction when the market was expensive would have reduced investor returns significantly. The reason is that the term “expensive” is a subjective term. Even if you use a more objective approach of looking at the P/E ratio, the data still shows that staying out of the market for months or even years waiting for a correction is a losing strategy.

Where long-term investors get themselves in trouble is that the correction they are waiting for may occur at a much higher market level than it is at today. Also, sitting on the sidelines for months or even years runs the risk of the investor losing patience and ultimately capitulating to the Bulls and buying back in to the market at a much higher level.

Few investors believe markets efficiently follow a random walk even though it’s a key component of market theory.

Short Term Stock Market Correction

Timing a stock market correction for profits is best done using a short-term swing trading strategy. The idea is that you don’t want to try and catch a falling knife.

Looking at QQQ, the Russell 2000, and the S&P 500, over the last week, you can see that the Russell 2000 and QQQ are leading the S&P 500 lower:

In stock market corrections, the Russell 2000 usually leads the other major indices lower.

The market is telling us that what happens in the FANG stocks and QQQ will likely dictate market direction on the S&P 500.

With the Twiggs Money Flow breaking below zero for the first time in 2017, I think a retest of the $136 support level is likely.

Right now being in cash is an excellent move. Continue to stalk your favorite stocks for a swing long entry. I wouldn’t be too quick to jump back into this market yet. Consider using stop limit orders as taught in the lesson here.

The main thing to watch out for is the Establishment ‘Defeat Trump’ propaganda in the WSJ, CNBC, CNN, and elsewhere. These media groups are so dishonest that some were even claiming that the stock market went up because Steve Bannon left the White House. That was the propaganda narrative with CNBC claiming that traders on the NYSE floor cheered as proof. First of all, those old left-leaning talking heads in stock exchange clothing walking around looking stupid on the NYSE floor are not representative of the stock market as a whole.

Just as the Establishment media was advancing the false narrative that markets were up because of Steve Bannon being out at the White House, markets turned back down and so they quickly killed that false narrative. Another example is CNN’s propaganda that the entire market is worried because of Trump.

For the first time in our life-times, we have a President who is exposing the Establishment propaganda media in this country. There is a major information war going on right now.

As a trader, you can’t get caught up in the propaganda and the power struggle going on for control of public perception. You have to check yourself every day and make sure you aren’t making trading decisions based on propaganda. If you think the mainstream media is getting into your head too much, cancel your subscriptions like I did with CNBC Pro last week, and the WSJ and Barron’s the month before. Just turn it off because these propaganda machines are not going to help you make more money at stock trading.

Remember folks, markets mostly do random walks, especially during intra-day trading. No left-leaning propaganda media outlet can peer into the minds of millions of traders around the world and claim to know what they are thinking. These propaganda publications believe that perception is reality so if they can control the public’s perception, they can control reality.

The U.S. stock market is overbought, and the weak seasonal period is upon us. May through October marks the weakest 6 months of the year.

I don’t want to beat up on the mainstream media too bad so I’m not going to mention where I read the following bogus analysis:

Overbought markets look for excuses to sell off. Will Trump’s lack of leadership become an excuse for a big selloff in stocks?

The mainstream media is actually talking about a stock market correction as if it is some type of external beast that thinks for itself and makes up excuses. Reality check: you and I are the markets. People that work at institutional trading firms and hedge funds are the markets. Are you looking for an excuse for the market to sell off? I’m not either. Nobody is. We’re just reading the charts, analyzing the fundamentals, weighing external news events, and making our decisions. Nobody is searching under desks and looking everywhere for excuses to sell out of their positions. Especially not some make-believe entity called Overbought Markets.

Did you notice the Establishment propaganda “Trump’s lack of leadership…”? You can criticize the President on a lot of things but one thing you can’t criticize him on is a “lack of leadership”. President Trump is a strong leader with strong ideas and a vision on which he is moving to execute those ideas. Get in his way and “you’re fired”. Trump demonstrated his very strong leadership skills for over a decade on the hit-show The Apprentice. President Obama isn’t even in the same ballpark as President Trump when it comes to having strong leadership skills.

Mainstream media propaganda about stock market corrections.The main factors influencing a short-term stock market correction right now are: the speed of Fed rate hikes and balance sheet reduction, North Korea, the debt-ceiling, the economy, and the speed at which the Trump America First agenda is moving forward. Anything outside these main themes is likely Establishment propaganda by powerful groups battling to control public perception and thus reality.

CNN Admits Trump Russia Stories Are Fake News, All About Ratings

A CNN producer is caught on hidden camera admitting that so called “news” about Russia ties to the Trump Administration are fake news and are really all about ratings.

I said months ago on a Saturday show that the whole Russia thing was fake news. Either a real stupid YouTuber or a democrat operative posted below the show that I was way off about Russia and that I should stick with talking about the stock market.

So Bloomberg, CNBC, the Wall Street Journal, they can talk politics and publish fake news stories about Trump and Russia but little old nobody me, I’m the one that can’t talk about Russia? Talk about straining out a gnat yet swallowing a camel. It was a lame post and read more like a manipulative psy-ops and so I banned the YouTuber from commenting on my videos.

Here is the hidden video of a CNN producer talking about why the network keeps running Russia stories:

Stock Market Today Is Half the Size It Was In 1996 Thanks To the Fed

The stock market today is about half the size it was in 1996. In the U.S, the number of stocks has fallen by half in the past 20 years, from 7,322 to 3,671 last year according to a report from Barron’s (link above).

Stock Market Today Is Half the Size Thanks To the Fed

I know, it’s every bloggers favorite past-time to lay blame for everything at the foot of the Federal Reserve. But folks, if the shoe fits…

Ultra low interest rates means that companies have access to plenty of low interest loans. With a lot of money sloshing around at the corporate level thanks to years worth of QE, why would a company want to go public and deal with the headaches of regulatory compliance?

Companies are also choosing to exit public markets at a vastly greater clip than the number that are joining the public marketplace. The number of initial public offerings in the U.S. has declined by almost 90% annually in the past 20 years.

According to Pantheon and others, what’s left in the public marketplace isn’t as fast growing as the universe of publicly traded stocks from past decades.

That explains why finding the next Walmart, Amazon, Google, or Netflix in the stock market today just became a lot harder. Do you think that’s an exaggeration? Think again.

The WSJ just published a report entitled Stock Picking Is Dying Because There Are No More Stocks to Pick.

Hong Kong Stock Exchange Now Has Competition For China Mainland Stocks

The Hong Kong Stock Exchange will now have have competition for China mainland stocks after the MSCI approved plans to add China’s mainland A shares to its index. According to a report in the WSJ (link above) this will bring billions of investment dollars into China stocks.

MSCI’s decision Tuesday to add China A-shares, stocks denominated in yuan and listed in either Shanghai or Shenzhen, to its MSCI Emerging Markets Index stands to boost demand for Chinese stocks by billions of dollars over time.

MSCI announced earlier Tuesday a long-awaited decision in favor of adding stocks, known as A shares, to the firm’s emerging markets index, which is tracked through an estimated $1.6 trillion. As a consequence, non-Chinese investors that follow the MSCI Emerging Markets Index must buy Chinese A shares to match the updated version of the index.

MSCI said 222 companies would be eligible for inclusion, increasing China’s weighting in the emerging-market index by 0.73 percentage point from its current 28%. The change will also be reflected in other indexes, including the MSCI All Country World Index.

But U.S. asset managers have been eager to push into the local market. China has the largest weighting in the MSCI Emerging Market Index, at 27.66 percent, although that only includes Hong Kong and U.S.-listed shares of Chinese companies.

Because of limited access to the mainland Chinese stocks, foreign investors own less than 1.5 percent of that market, Chin Ping Chia, head of research for Asia Pacific at MSCI, said on a conference call with journalists after the inclusion decision was announced. He estimated $17 billion to $18 billion could flow into Chinese A shares.

Adding China to the MSCI index will expose foreign investors to a market still plagued by limited transparency and frequent government intervention, were some of the concerns cited by the index provider in the past three years following rejections. Even as China aims to attract more global capital, authorities continue to intervene in domestic stock and currency markets, and take on speculators.

MSCI indexes already include Chinese companies shares listed in on the Hong Kong stock exchange and New York, but not those in mainland China.

Front Running the MSCI Decision In China Mobile

I like China Mobile as a way to front run the MSCI decision with the idea that a rising tide will raise all ships. China Mobile is a huge corporation that should benefit from an increase in investment inside China. The stock has really sold off over the last couple of months as well.

The stock has been a little too volatile recently for an entry. I would prefer a consolidation move and then a candle over candle reversal before entering.

The Effective Volume shows large players are buying up China Mobile into the downward move and the Twiggs Money Flow shows a positive divergence which suggests increased buying pressure as the stock drops.

GO HERE TO CHART LARGE PLAYERS AND THE TWIGGS MONEY FLOW LIKE THE CHART ABOVE… AWESOME TOOL!

What You Don’t Want to Hear About Housing Starts

Housing starts have contracted for the third month in a row. According to an article in the WSJ (link above) economists had forecast a 3.4% increase. The actual number was a -5.5% decrease. That’s a huge miss folks and the reason is the “builders can’t keep up” fallacy.

Housing Starts Are Falling From Rate Hikes

The reason that economists keep getting surprised about weakness in the housing sector is that their reasoning is wrong about why the sector is contracting.

Think about the spin that home builders are struggling to meet buyer demand and so that’s why starts are falling. One simple chart defeats that reasoning: Interest Rates versus Housing Starts.

Clearly you can see that when interest rates rise, starts fall. When interest rates fall, starts rise. The high correlation between rates and housing looks like a mirror image.

Anyone who has recently purchased a house has likely overpaid for it and we know this because the average selling price of homes is above even the 2007, $322,100 high.

The average selling price today is $374,500 which is insane because wages have not kept pace with the rising cost of homes.

Now we have the Fed hiking rates which pushes up the cost of financing a home and thus it pushes housing starts down. That’s what rate hikes do, they slow down the economy because they make it more expensive to finance consumption.

Why Current Interest Rates Could Help Get Yellen Fired

President Trump told Janet Yellen he thinks she’s a low interest rate person like himself according to a CNBC report (link above). Yellen has been raising current interest rates and so I’m thinking the President is less likely to keep her on-board when her term expires in February 2018.

Citing a Wall Street Journal article, President Trump told Janet Yellen back in January that she was doing a good job, according to people familiar with the exchange. However, the President also told Yellen that he thinks she’s a low interest rate person like himself.

Deviate From Low Current Interest Rates Else You’re Fired

I’m thinking that President Trump asked his legal advisor if he has the power to flat out order Yellen to keep interest rates low. I know I’m reading tea-leaves regarding current interest rates but it’s important we get the conversation going as the Fed is the single most important factor in the direction of the stock market.

President Trump was probably told that he can’t directly order the democrat Yellen to keep rates low but that he could make it clear to her that he favors lower rates. I think this was a clever way of communicating to Yellen what he wants her to do if he’s going to keep her on after February 2018.

Yellen has been raising current interest rates and slowing down the economy. If the US economy keeps deteriorating in the second half of 2017, you can bet that the President fires her when her term expires in February 2018. Again, I’m reading tea-leaves here so take this speculation with a grain of salt.

Guess Who Is On Trump’s Economic Team, SWEET!

Do you remember when the WSJ, CNN, CNBC, NBC, ABC, CBS, Bloomberg, Forbes, and Reuters ran stories at the start of the year about how no one even knows who was advising Trump on economic matters? They even went as far to say that Trump had no support of any economists.
Continue reading “Guess Who Is On Trump’s Economic Team, SWEET!”

US Jobs and Holiday Hiring Stronger This Year

Temporary holiday season hiring in the US is stronger this year than in previous years. Employers having a higher demand for temp workers for the holiday season is a bullish signal for the US economy.

The WSJ writes

“Five years ago we could find a lot of professional-level people that didn’t have a job,” said Kelly Purves, vice president of BevMo human resources. “Now there’s a lot less people in that position.”

I don’t think that stronger holiday season demand for temporary workers is going to impact whether the Federal Reserve hikes rates in December. I think the bigger news is just how tight this labor market is. I’m hearing more and more from employers that it’s hard to find good help these days. Anyone who wanted a job and has talent has already been hired.

Saudi Arabia Bond – Fat Chance You Oil Pumping Sharks

Saudi Arabia is now offering an international bond that yields 4.6%. The WSJ writes

The $6.5 billion 30-year portion of Saudi Arabia’s bond is set to pay 2.1 percentage points more in yield than a comparable U.S. Treasury, or around 4.6%. That is a sizeable pickup in a world where developed-market bond yields are on the floor or in negative territory.

Let me get this straight. Saudi Arabia targeted the US oil industry by flooding our markets with cheap oil. Mainstream media groups like the WSJ and CNBC were complicit in the scheme with only a few alternative bloggers like me critical of what Saudi Arabia was doing. Folks, what Saudi Arabia did was illegal according to international trade laws and it could even be viewed as an act of war.

The US is one of the biggest consumers of Saudi Arabia oil. By increasing supply to force down the price of oil, Saudi Arabia made a lot less money and hurt themselves in an attempt to hold on to market share. Saudi Arabia is going deeper into debt by the week.

Now Saudi Arabia has issued a bond to shovel their debt off onto Americans. Saudi Arabia wants you and me to buy their debt, and they’re willing to pay us a 4.6% yield to do so! The WSJ and other mainstream media groups seldom if ever criticize Saudi Arabia because the Saudis have a lot of influence, power, and money around the world.

Any American that buys this Saudi Arabia bond has lost sight of the forest for the trees. Buying Saudi Arabia debt is un-American in my opinion.

Folks, I hope debt crushes, Saudi Arabia. They deserve it. They put tens-of-thousands of Americans out of work and have forced many American businesses into bankruptcy. Saudi Arabia’s debt problem is of their own making, and as the Bible tells us, you reap what you sow.

I don’t buy China stocks because China is a horrible communist country that runs over its citizens with tanks. I won’t buy Saudi Arabia bonds because Saudi Arabia nationals were responsible for 911 and Saudi Arabia targeted the US shale oil industry to keep market share.

Think about it. It’s evil genius brilliant. Go into debt by oversupplying the US oil market and put US oil drillers out of business. Then get those same Americans to finance the debt that hurt their very own economy!

I’m by no means an “ethical” investor but come on folks, you don’t give your enemy weapons to turn around and shoot you with. It’s just common sense IMO.

We need to get smart, fast folks. We are getting beat at every turn. Everywhere you look the politicians that are running our government and negotiating international trade deals are doing so because of corrupt “pay-to-play” schemes and special-interest groups instead of what is best for America. If we don’t start putting America first, there won’t be an America to call home.