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Daddy WarBucks: The Simple Truth About Today's Market Rally

Today's market rally was no big unusual event.

The last several days the markets were in a sqeeze pattern.... meaning that buyers and sellers seemed fairly equal in number. Not much up and down movement or spread. In fact this is caused by syndicate traders buying up shares as traders sell. It's called buying into the selling.

The syndicate traders (the bad guys) are quietly accumulating shares or contracts and it is apparent by low volume.

Then at 2:30 am ET today the strategy began to play out. As America slept these syndicate traders began to run the market up. This is the best time because the herd who were in short (selling) positions had orders to buy (in case the market popped-up) sitting on servers waiting to be triggered.

By the 9:30 am open, the market had already advanced significantly. As each level up is violated, more and more stop losses or buy orders are triggered causing more and more upward momentum. So this snowball effect comes into play.

This is also called "running stops".

It usually happens on bad news, which we had.

It's the way syndicate traders operate. Do the un-expected. That's the only way to take huge profits.

They got in low at the bottom, and the spooked herd pushed the market up as they rushed to lock in profits and minimize or avoid losses.

Syndiate traders are masters at creating an environment where retail and institutional traders have to make quick, fearful panic decisions.

For all those who can't wait until the economy collapses, there is still hope. Today's rally didn't fix anything.

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Question for Daddy WB

I understand you know alot about economics. I am wondering if you think things will collapse into DEflation (cash is trash), or swing into hyperINflation (cash is trash)? I have read some experts say the former, while some say the latter.
Do you think the country will go bankrupt and not pay the state pensions, Soc Sec, etc, OR will they pay them in ever inflating dollars that have lost their purchasing power?
When do you think things will collapse, and which way?
Thanks!

I only know 24 hours in advance

The software I had made for my trading charts tells me what will happen the next day. On Monday night when all other "experts" predicted a sell-off these indicators clearly predicted an upmove. By 2:30 am the move began. The rest is history. The indicators never gave any sign that the day would reverse and go down.

This was not about stocks being worth more. This was about a profit opportunity for syndicate traders or "smart money". They treat large institutional traders and retail traders like a herd of cattle.

If you can spook a herd, they will move in a panic and as that panic spreads it will intensify. That is what smart money thrives on. This week they will probably convince the herd that the bull market is on again and then suddenly sell hard into the buying, causing traders to panic and triggering hundreds of thousands of sell orders.

Remember as the herd moves in the desired direction they increase the value of smart money's positions. Doesn't matter if it's up or down. All that matters is the power of the move.

Syndicate trading is illegal. It's a concerted effort by a group of traders around the world. They have massive resources and can afford to go opposite the market for the short term, long enough to cause an unexpected panic.

Do I think the country will go bankrupt and not pay the state pensions, Soc Sec, etc, OR will they pay them in ever inflating dollars that have lost their purchasing power? It already is bankrupt. And this government so far has proven they will help banks and brokerages atthe expense of taxpayers. Everything they do to "fix" things is done with taxpayer money.

"PunJab! Bring me my checkbook!"

ya...

the sad thing is that you don't even need to know that to see it.

If you heard the bad news this morning...that shoulda told you right there that something was off by being up almost 4% today.

DW

Thanks for your insight.

"Liberty and Freedom for our Grandkids"

"Liberty and Freedom for our Grandkids"

Thanks, DWB. Yes, I always

Thanks, DWB. Yes, I always have to laugh at the lunacy and sheer insanity of these market manipulators and government stooges who think that like King Canute, they can hold back the tide and indefinitely delay the inevitable. Just how long do they think reality can de denied?

I knew there was somethng at play today...

... thanks for filling in the technical details.