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"The more gross the fraud the more glibly will it go down, and the more greedily be swallowed, since folly will always find faith where impostors will find imprudence."
Charles Caleb Colton
I had the opportunity to speak with a pit trader the other day, and he described the mood amongst traders as cautious. They see the stock market rising and cannot get in front of it, as the buying is too well backed. But the volumes are so thin and the action so phony that they cannot get comfortable on the long side either, so are buying insurance against a correction even while riding the rally higher.
This is a market setup for a flash crash.
Non-Farm Payrolls report on Friday.
"On a side bar. remember a couple of years ago, when I went on CNBC to talk to them about things that were happening in the markets in the afterhours that didn't make sense, and looked like an "outside force" was moving them? And they laughed at me, and told me to take my theory to Hollywood, and see if they would make a movie of it! And then a month or so later, a guy came out and proved my theory? Well. I have to believe that the rise of Gold and Silver, the rise of Treasury yields, and Oil, all being reversed on a dime, smells like PPT. it walks like PPT. and it talks like PPT." Chuck Butler, Everbank World Markets
Fool the people? Yes we can. For a little while, anyway.
"Our government... teaches the whole people by its example. If the government becomes the lawbreaker, it breeds contempt for law; it invites every man to become a law unto himself; it invites anarchy." Supreme Court Justice Louis D. Brandeis
Desperately Seeking Suckers
