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Dr. Stocks-PHD Twenty year Wall Street veteran. Hollywoods direct line to Wall Street. Specialize in market timing and predictive modeling. Follow my updates via twitter/tkathlinastocks and at my blog http://traderstocksets.blogspot.com/
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  • THE FED VERSES THE MARKETS-CHART REVEWS JUNE 5TH 0 comments
    Jun 5, 2012 7:19 AM | about stocks: MDY, UUP, SCO, DIG, UYM

    The question: Will there be QE3?

    The answer to this, maybe can be determined by looking at Mitt- New World Order - Romney's, top campaign donors list. Shocking I know-but we can see EVERY BIG NWO Bank that the FED ANSWERS TO is backing Romney.

    Did the FED pump up asset prices long enough for their BANK buddies to get out of their long positions and get short the world markets for the coming implosion?

    I believe the answer is yes. I also believe in order for Romney to win; they don't want the DOW up 200 points everyday.

    Now lets quickly run thru some charts. What will be obviously clear-MARKETS downward slope pressure on assets-verses FED induced rising true trend lines.

    The MARKETS will win this game-not the BANKS.

    DIG-Note the downward slope of the 200 day weekly, verses the higher lows induced by the FED. These two forces are quickly getting close to a major battle-THE MARKETS WILL WIN.

    MDY-S&P mid caps, more American revenue based companies. Here I have a FIB retrace fan that spans the QE, QE Lite, and Twist programs.

    Despite the Trillions of DEBT created by the FED-slowly one by one, the FAN lines of support are being removed.

    SCO-Most my focus is on ENERGY related ETF's because ENERGY is the one true WORLD product that despite race, color, religion-we all use, rich or poor. (Sorry Apple)

    SCO is the short energy product. The FED pulls their tricks, this ETF rolls over and goes down. Notice how this year is a much different technical picture from last year.

    Last year, SCO was stopped cold by the 50 day, struggled to get above it, then rolled over; because of anticipated FED action.

    This year, the MARKET FORCES blew SCO right past the 50d just as if it wasn't even there. WHY? Could the MARKET anticipate no QE3?

    Part of the FED un-stated mandate is to support S&P multinationals earnings power by crushing the US Dollar.

    This serves a few purposes: allows the continued export of JOB's to cheap labor Foreign lands-which then artificially supports Company profits thru repatriation of Foreign dollars to US dollars.

    Gone are the Henry Ford ideas of putting Americans to work making the companies products; paying workers a living wage so they can afford to buy the companies products.

    The US Dollar, or the UUP shows two patterns: A FED induced Head N Shoulders pattern, which has played out, and a MARKET induced Inverted Head N Shoulders Pattern, which is now in play.

    As the dollar rises-WALL ST screams for more QE. Why?

    A rising dollar means lower profits as all these hit and quit it Company CEOs have staked their fortunes on Free Trade Agreements, SLAVE CHEAP LABOR, and REPATRIATION of money.

    UYM-Another Energy play, same story. Downward 200 day slope, Head N Shoulder pattern--all despite FED action over last 3 years.

    Conclusion:

    Wall St. power elite and the FED are in direct opposition to MARKET natural forces.

    Every week, money flows out of the stock market and into other investments that are not worthless paper. Currently their are 23 million people on Food Stamps, 100 million people NOT IN THE LABOR force and the biggest tax base is the baby boomers; putting their money under a mattress.

    Extend and Pretend has an end and it is coming soon.

    Tim Kathlina

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: MDY, UUP, SCO, DIG, UYM
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