The Razor's Edge (S&P 1300)

We are tip toeing along The Razor's Edge this week. It can be seen as the red line in my charts. If we break the S&P 1300 to the downside tomorrow, the damage could become severe. A close below 1290 should assure more downside.

The first two charts depict such a scenario. The last chart depicts a close above 1300.

Pondering Space and the Doppler Effect/Red Shift

I had some random thoughts about our Universe when I got home from work. Enjoy!

What if the Universe isn't expanding at an accelerating rate? What if our Galaxy is currently undergoing an ever increasing mass as our Galaxy is cannibilizing and consolidating another galaxy near it's edge. As the center of our galaxy grows in mass, the fabric of space-time becomes more and more disrupted. As this singularity grows in mass at an accelerated rate, the distance across the fabric of space-time appears to be growing at an accelerated rate as well.

Thus making everything outside our Galaxy look like it is moving further and further away from us.

Thus making every Galaxy that is consolidating look like it is moving further and further away from each other Galaxy.

Scheduled turn between 1360 and 1380

I have a scheduled turn between 1360 and 1380 in short time. Two of the ideas have remained unchanged for a month and one of those original ideas has been slightly modified.

Technical Analysis only please. I will post economic ideas later, including oil, gold, and SILVER.

Chicken Bones and Entrails

The only safe play I see right now is selling hard through a breach of 1250. It is very probable that we are range bound until June. I can see this quarter seeing a significant amount of Options, both PUTS and CALLS, expiring into worthless pieces of paper as the Theta is burnt to a crisp. I imagine this will be the option writer's last season with a major killing, for a very long time.

Another assault on new highs ???

S & P 1280 appears to have held. The way in which it did so was quite odd. And it did so at a point where it appeared like the whole world was falling apart. The move off the 1250 shows strength, strength that I don't understand and strength that I refuse to touch. ........so more waiting. Zzzzzzz So more top calling from me in the future.

Colleagues and I have 1350 as our next S & P target, and it should be rather quick.(less than a month) Tomorrow or Monday we expect a "gap up." A gap up over the 1310 marker will verify this smaller degree of the count is correct. (Wave 3's are recognition waves, waves that make you say "Oh Boy" are easier to recognize than explaining the math behind them)

A large amount of volume poured in at the end of the trading day. A Big Player knows something and is front running it. I have no clue what it is yet. Wonder if it involves discussion about a Quantitative Easening #3 and a further slaughter of our US Dollar.

My only play right now is sell through a break down of 1280. I'll treat the move towards 1350 as a fireworks show and nothing more.

Fraud: Washington State Bill SB5272

Non-technical special, from Karl Denninger:


In Washington State there is a bill pending, SB 5275, which has as its title "Protecting and assisting homeowners from unnecessary foreclosures." However, buried in the text of the bill is the following:

7 (a) That, for residential real estate property, before the notice of trustee's sale is recorded, transmitted, or served, the trustee shall have proof that the beneficiary (bank) is the owner of the promissory note or obligation secured by the deed of trust. A declaration by the beneficiary (bank) made under penalty of perjury stating that the beneficiary (bank) is the actual holder of the promissory note or other obligation secured by the deed of trust shall be sufficient proof as required under this subsection.

What's the significance of this section? Simple: No proof need be offered that the bank actually holds the note or obligation. A simple declaration that they are in possession is sufficient. If you're in possession of something as simple as a piece of paper, why would not present the actual paper to the court? There's only one reason to "declare" rather than "prove" - you don't have it.

This bill before the Washington State Legislature explicitly permits the filing of perjured documents and the ejecting of homeowners into the street through fraudulent foreclosures. That which has been bad will, if this bill passes, become even worse. Remember from the above: 150,000 counts of perjury, zero indictments. One can only assume that lying about having the loan document will be prosecuted just as often as lying about reading the papers one submits to the court. That is, never.


In summary, the banks have bundled up these deeds of homes into various investment vehicles and have sold them off numerous times. Banks can no longer track down the physical deeds that are required by law in the event of a foreclosure.

Glimpse of Reality ???

Will the people of the world continue to notice the implications of Global Insolvency this week? My guess is people will wake up to more chaos in poorer nations and that the problem may come home to roost in the US, with State Governments also becoming insolvent. What it does to the Global Economic Markets is left to be seen. God knows I am surprised they have held up this long!!!



Interesting actions in the futures and currency markets tonight, with a sell off in the futures and the EURO actions becoming violent. The Gold line that depics the 8 month trend still has yet to be broken. Stuff won't get too interesting until the 1300 marker is broken on the S&P, as marked by the oval. The gap down in the morning should at least make things interesting. I will keep my eye on Apple to see if the building is truly burning.