Wednesday Outlook: Commodities, Global Markets

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As long as Uncle Sugar keeps the primary dealer network lubed with printed money, Da Boyz will keep things pumped up. Eventually, real earnings from corporations and wages for individuals will have to come through. Then consumers will spend and buy homes. Until then it’s just a game being played by those who can with other people’s money. Sometimes, often lately, I’m embarrassed to be in this business.

Not many people, other than Wall Street honchos getting fat on taxpayer money, like what’s happening. But, we press on.


Disclaimer: Among other issues the ETF Digest maintains positions in: IEF, TLT, TBT, UDN, GLD, DBC, DBA, EFA, and EEM.


The charts and comments are only the author’s view of market activity and aren’t recommendations to buy or sell any security. Market sectors and related ETFs are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotations aren’t predictive of any future

Comments

[User 353732:]

Wall Street and the Government are equally complicit in turning(involuntary) tax payer financed financial engineering into a vast income transfer device from retail investors to the Big Banks(and via the Big Banks , Congress gets its take thru campaign contributions).
The axis of WashingtonDc-Wall Street has become very adept at using manipulated equity markets for perpetrating yet another indirect and invidious taxation scheme to pillage the retail investor. What the Govt. does not take from the retail investor by force, Wall St appropriates via stealth.
Washington DC herds the small investor into the market via deceitful claims(abetted by a fawning MSM) of "worst is over; recovery is at hand; great time to invest in the stock market" and then Wall Street moves in for the slaughter.

Jun 03 05:52 AM

[Fulcanelli:]

Mr. Fry,

I sadly have to agree with your comments. But what makes me sadder and even angrier is that most are standing on the side lines watching the biggest crime in recorded human history go down. Further, the culprits are so certain of our ignorance and inaction that they are doing it broad daylight. Whatever remaining chips the mom and pop sheeple just threw back in the pot going all in, is sure to be wiped out in a matter of weeks. And what then, press on?

Its time to put on the full court press and start doing whatever is necessary, within our constitutional rights—if there is any left-- to end this sham and bring true trading fundamentals back into play. Until then, performing technical analysis on a highly manipulated markets is like trying to card count in Vegas.

Jun 03 06:30 AM

[Fulcanelli:]

PS. Much respect for your efforts here!

Jun 03 06:30 AM

[MKW:]

Hold on! Wait just a minute! There's got to be something wrong with your chart for SPY! It looks like the market actually went down in the last ten minutes. That can't be - it isn't allowed anymore, I thought. Oh, sure, I've heard legends that it used to happen, once upon a time, but I can't believe I'm actually seeing it. Got to be a mistake.

Jun 03 06:58 AM

[basehitz:]

David,
Thank you for the kind words.

To the poster who objected to my use of the term "sheeple" yesterday, I am making a specific observation consistent with the concept of using investor sentiment surveys as a contrarian indicator. What really irritates and concerns me now is I believe those who control the discussion in MSM and WS are duping innocent people out of their investment and retirement funds to offset the financial mismanagement of the power brokers. It is also why I rant constantly against CNBC, whose broadcasting consistently exaggerates volatility by cheerleading at the top and fear mongering at the bottom. They ALWAYS get the major turns wrong. That is why I suspect they are willing shills in this deception and blast them constantly. In the past, they have cost me money. Fool me once. . .

I also read your post stream and find your comments helpful. Therefore I elected to try to explain my frustration with others and not confront you directly. Hope this clarifies my concerns.

Jun 03 08:50 AM

[doubleguns:]

Oh, no!!!!! its right. Sold my shorts(pain threashold reached) and bought 50 shares long for a little play along. Ha, ha, ha.

Should have known. Head down, tail tucked, wimpering home now.

03 06:58 AM MKW wrote:

> Hold on! Wait just a minute! There's got to be something wrong
> with your chart for SPY! It looks like the market actually went
> down in the last ten minutes. That can't be - it isn't allowed anymore,
> I thought. Oh, sure, I've heard legends that it used to happen,
> once upon a time, but I can't believe I'm actually seeing it. Got
> to be a mistake.

Jun 03 08:52 AM

[Bull Run:]

I agree with your comments; It often does embarrass investors but NOT Wall Street. How do you embarrass a pimp or a hocker? Wall Street pimps are NO different, that the ones that work lower east side. JP Morgan sold $ 5 billion, M. Stanley $2.2 billion and Am. Exp. sold $500 million, in stock this morning, so maybe the Bull has had his horns cut off, (polled steers) . This market has allowed BOF(in their report) to raise $33 billion since May, with $7 billion of that in the last 6 days, all on the backs of hard working Americans.

Jun 03 10:01 AM

[Larrysyr:]

Mr. Fry,

You strike me as an honest investment manager and should hold your head high given the straight-forward comments you give us daily.

The average "retail investor" these days is a worker investing for retirement through a 401(k)-type arrangement. I know quite a few who, after 20 years of consistent saving through these vehicles, have negative returns on their accounts. Most had no idea what they were actually getting themselves into, but relied on employer and investment gurus who insisted the stock market has a long-range return of 8-10%.

I really appreciate your insights into the recent manipulations of "Da Boyz." Between last year's crash and this year's manipulations, I am beginning to feel that a whole generation has been taken for a ride to the fleecing station, primarily through 401(k) "savings."

Thanks for giving me hope that there are actually some honest people working in the financial markets. Keep up the good work!

Jun 03 10:12 AM

[speeddaimon:]

Basehitz and David,

The word sheeple is something I historically associated with conspiracy theory nuts and tin foil hat consumers. However, after reading this particular column and Base's explanation I now understand it to be actually referring to those people that believe whatever their government and the MSM tell them, no matter how improbable it is. So I offer my apology to Basehitz, and my appreciation to David as once again, I have learned something new today.

Jun 03 10:25 AM

[AndrewBaker:]

Well, it's clear that more and more on here at least, are aware of the conspiracy that has driven the market up on nothing, and also aware that the money used has been either tax dollars or 401k, IRA, or mutual fund savings by ordinary people. And many of them will have got very little return over the past 20 years, and even a loss over a shorter period, because of shenanigans played by politicians and financial managers. They may well have been better off by staying in cash earning interest. But what is worse is that with this latest hype, when the correction comes, as it must, they will lose even more.

Retirement now is a dream for many, and a dream that will be that many more years in coming thanks to Da Boyz.

Jun 03 03:04 PM

[The Honest ...:]

3:30-4:00 Rally Time for the Market Magicians

Yet again, per usual, the market magicians engineer another run into the close. This seemingly daily action is probably starting to build on itself as whomever is doing it, is doing it, so traders are jumping on board this "trend" at the end of the day which amplifies the action into the close - just what the market magicians want I suppose. Plus, today we ripped commodities lower, dollar higher and limited equity damage with that last 15 minute jig. Well played. Funny thing is if we continuously sold off huge into the close (in the last 15 minutes) CNBC and the media army would be talking about hedge fund manipulation and the need for the SEC to investigate, etc. But, since it is an up move - no reason to question the irregularity. CNBC is a puppet show (for the most part at least).

Who is this cloaked figure continually providing the late day bid?

the honest trader
www.thehonesttrader.bl.../

Jun 03 06:24 PM

[David Fry:]

All well said, including humbly, those who said nice things about the Fryguy.........

Jun 03 06:52 PM

[BigJake:]

if you can't beat 'em join em I suppose

Jun 03 08:23 PM