A rather large sell spike in the overnight futures. Looks rather ominous. May I remind that we still have a valid 5 wave pattern down from peak that has yet to be "proven" (via new highs) that it is indeed not.
The market has a way of calling your bluff every time as Denninger likes to say. The market appears to be doing that with Greece. Once Greece caves to the "bailout" what will keep the market from calling everyone's bluff? The market is not nice, has no feelings, and does not care.
I think the FASB rules have allowed mark to fantasy quite long enough. The increase in financial stock volume is the market heating up to call the sector's bluff yet again. Will it abate? I doubt it until the matter is settled once and for all. This is one big game of Blackjack. Or Poker. The Market is the house. No one is bigger than the house. No one.
For those who are relegated to the thought of an omnipotent endless collusion between banks and the Fed on keeping the market propped up, what makes you think a coalition of banksters will stay coherent for any length of time? For all we know Merrill is shorting Goldman heavily and Goldman is retaliating in kind.
What makes you think the Fed isn't tired of all the bullshit? Do they really have a plan? I think its pretty clear they have been "winging it" all along. Their balance sheet is mired in crap and gee ain't that swell?
Even if the Fed had a "plan" it will always unleash unintended consequences. Just like Congress. The more needless laws they pass, the more things get mucked up to the point where it all fails. Guess what happens when they try price controls again? http://globaleconomicanalysis.blogspot.com/2010/04/wheres-hundreds-of-billions-in.html I'm sure the market will cooperate just fine! Yeah right!
Nothing has been fixed. Nothing. The debt bomb just grows fatter. And it is all intertwined to the nth degree.
Every pension, retirement fund, et al, are all on the same side of the bet to be sure. Thats why its a doomed system. In essence its a Ponzi scheme that requires infinite leverage and inflows to keep it going up.
Deflation will catch up. The Market will call everyone's bluff. And when there is nothing but a jack high being held by most every player, the market's royal flush will crush them all. I would think the Market has at least has three Aces.