Market action spells danger folks.

I'm still in China and the Great Firewall of China has made it difficult to keep up with my blog which is a shame because this recent breakdown was very significant.   The "buy the dip" crowd did not step in this time as everything thought (present company excepted).  Critical "lines in the sand" are being crossed all over the place.  The top is in IMVHO.

I've been on S+P topping watch for several months now and it kept extending and extending.  Although I smelled the foul stench of Bernanke at work with direct market manipulation, I also knew that he would have to unwind it all because if the American people ever caught him directly buying shares then I think the game would be over.  But I am 100% sure he has been doing it as I can see the crazy effect it has had on the topping process.   So many times the market should have turned down but he didn't let it.  He would see support begin to fade and then there would be a crazy unexpected rally.

Despite his corrupt intervention, I never did say "oh, maybe I should go long this market".  Hardheaded maybe but my VXX and FAZ climbed back into green in just the past 2 trading days did my GOOG puts.  USLV is going to take off soon IMO.  Keep an eye on the miners, especially the small ones.  I still like TRX and I still like PAAS which is up nicely even though the metals are muted (for now).  This divergence between miners and metals tells me that government manipulation will fail soon just like the share buying program has now failed IMO. 

I laughed the other day when I read an article about Jamie Demon ("Dimon) whining about how the government was being unfair to him in how he was treated for consorting with a known Ponzi (Madoff).  Demon should be in jail if not in Hell.  He is one corrupt SOB just like all the other big banking CEOs.  They ALL sold America down the river using their scam ridden money supply.  All of the major banks will be getting pounded soon.  All of them are like toxic economic waste.

The graph below is for FAS, the triple leveraged banking sector.  This is wave 1 down.  Look at that ending diagonal!  5 waves bumped off the rails and then a collapse to the lower support, small bounce, and then massive 3rd wave breakdown. It is going to collapse down to $5 before this is over.  The banks are bankrupt and they will have to admit it before the powers that be can end this Ponzi Period and get on with starting a new Ponzi Pump.  I say again, some major banks will be declared insolvent, some CEOs will be jailed and millions will lose hundreds of billions before this collapse is through.  401k are going to be stolen from because the value to pay them off never was there.  It will be blamed on contagion, etc. but that will just be a cover story.   A Ponzi is a Ponzi.

This could take decades like it has done in Japan. The only way not to have it take that long is to forcefully remove all those who will not admit the bankruptcy.  Failure to do this will result in a lost global generation.  It really is that serious even though few understand it at this point.   When milk is $8 a gallon in the US and Gas is $10 a gallon then people will finally start to see what I mean.