The New Norm: Fake Financial News & Data Manipulation

Data Manipulation

Data Manipulation is fast becoming the new plague

Look at the recent headlines; all the top players are going out of their way to create a mountain out of a molehill. I wonder why? Are they doing this because they love the masses so much? We think not; the idea is to fleece the masses both ways; on the way and on the way down.  Nothing drives the masses more insane then uncertainty. Suddenly create the illusion of uncertainty, and all hell will eventually break loose.  All hell is the secret code word for long-term opportunity.  Individually these stories are not a big deal, but what stands out is all these comments were made around the same time; it almost seems like a coordinated event.

Even Stan Druckenmiller doesn’t know where markets go next

After a wild three months in the financial markets, the billionaire investor is warning that trading conditions may become even more challenging as central banks withdraw stimulus from a global economy that’s already slowing. He anticipates lousy returns on stocks for years to come and has been buying US Treasuries on the expectation that yields will keep dropping.

“If you look at the indicators I have historically used in my business, they’re not red yet, but they are definitely amber. https://bit.ly/2Q1qgYY

 Greenspan Says Politics Today Are Unlike Any He’s Seen

Former Federal Reserve Chairman Alan Greenspan said the current state of U.S. politics is unlike anything he’s seen.

“I was in the U.S. government for almost 20 years and I’ve never seen anything remotely close to what we’re observing today,” Greenspan said on Bloomberg TV on Wednesday. “I think the economic outlook is being significantly affected by the poor politics,” he said, adding that he’s “very much concerned.” https://bloom.bg/2SmATr2

Janet Yellen is worried about the next financial crisis

Janet Yellen is worried about the next financial crisis and told a small, intimate audience at an event Wednesday night in Washington, D.C., that her biggest concerns were the potential for reversal of financial safeguards put in place after the crisis and growing corporate debt.

“I am worried that we are in a deregulatory mode and I see a lot of pressures building in the system to go further to really weaken fundamental safeguards that were created in Dodd-Frank. We are a decade after the financial crisis so that would be worrisome and wrong to do,” Yellen told the audience at the Women in Housing and Finance holiday event. https://on.mktw.net/2SOVuEu

The idea is to make any news look worse than it is. Have you ever noticed that not one so-called “end of the world” actually ended the world? The only thing that ended was the B.S con artists who were making this bold proclamation. In the end, these chaps are after the same thing; push the masses to sell their stocks so they can come in and buy them on the cheap. There is no such thing as free advice; free advice usually costs 10X more.

Why is Steve Mnuchin making statements on behalf of Trump?

Treasury Secretary Steven Mnuchin said Saturday that President Donald Trump reassured him that he has never suggested firing Federal Reserve Chairman Jerome Powell.

To make it look like he is trying to appease the crowd but in reality creating more uncertainty as it breaks away with tradition. Trump is the one that announces any changes; he does not let others do it for him.  This is a perfect way to further destabilise the ecosystem

Why did Mnuchin announce to the world that he was going to hold a meeting with the Top Bankers?

Treasury Secretary Steven Mnuchin held calls on Sunday with the heads of the six largest U.S. banks to shore up confidence in the U.S. financial system amid the recent market turmoil.  “The banks all confirmed ample liquidity is available for lending to consumer and business markets,” a statement from the Treasury said.

Why not keep this matter private? Because the goal was to add further uncertainty to an already uncertain situation. Because misery sells and it’s very profitable to trigger a mass stampede, plus it works like a charm, so why stop now?

Why is Trump attacking Jerome for so long?

Why not demote him; many experts believe that Trump can demote him.  He attacked Jermoe just before rates were raised and now he is attacking him after they were raised. Why use the same failed strategy. His latest attack

“The only problem our economy has is the Fed,” Trump tweeted. “The Fed is like a powerful golfer who can’t score because he has no touch — he can’t putt!” He has previously called the Fed, which angered him by hiking rates last week, “crazy” and a greater economic threat to the United States than China.

To create even more uncertainty; it appears all the big players are playing the same game as they all stand to benefit.  This is like insider trading without the threat of punishment.

Border Wall Tantrums

Congress and the White House have failed to break an impasse over President Donald Trump’s demand for $5 billion to build his proposed border wall. About a quarter of the government will remain unfunded until at least Thursday, when the Senate will next convene.

But the stalemate could last much longer as Trump and Democratic leaders give no ground on funding for the barrier on the U.S.-Mexico border. On Sunday, incoming White House chief of staff and Office of Management and Budget Director Mick Mulvaney said “it’s very possible this shutdown will go beyond the 28th and into the new Congress,” which starts on Jan. 3.

Trump is threatening to keep the government shut until he gets is funding for the wall, which is another layer of uncertainty.

In every instance, the media is overhyping the situation and going out of its way to create even scarier scenarios. Wait we have not added all the stories about the trade war and how Xi is supposedly acting tough one minute and then ready to negotiate in the next.  Nor have we discussed the big deal that was made over Trump’s decision to leave Syria, and the list goes on and on.

Consider the following:

What was the difference between the Feb 2018 correction and the current one? At least there was a proper trigger for that event. Bullish sentiment surged to a seven-year high, even though it only maintained this reading for roughly ten days. Had that correction morphed into a back-breaking correction, we could justify it as at least two triggers were there; bullish sentiment soared to a seven-year high, and the markets were trading in the extremely overbought ranges. This time around, bullish sentiment did not even make it to the 54% mark, and our indicators had already pulled back from the overbought ranges. In fact, they were dangerously close to the oversold ranges on the monthly charts.

Higher interest rates were not an issue as the next interest rate hike was already priced in and tariffs were already priced in also.  However, when these events were weaponized, they started to become an issue.   Now that the big players have seen the benefits of this type of attack first hand expect it to be used ruthlessly in the years to come.  However, if you stop and focus on the forest as opposed to a single tree, this weapon will have no effect on you.

Other Stories of Interest

2019

Long Term Trends & Bull Market Bear Market Nonsense   (Jan 16)

Bull & Bear Market 2019: which one will prevail  (Jan 14)

Stock Market Crash-Media Lies And Ignorant Experts  (Jan 11)

Market Correction Vs A Back Breaking Market Correction (Jan 3)

Bitcoin Crash: Is Bitcoin Bull Dead Forever (Jan 1)

2018

The Boom And Bust Cycle Due To Fiat-Buy The Boom & Sell the Bust Phase (Dec 6)

Risk and Opportunity; When To Buy & When To Run (Nov 28)

Risk To Reward Ratio & Opportunity Vs Risk (Nov 27)

National Beverage Corp. (FIZZ) Is still a good investment (Nov 22)

Lost Money In The Stock Market? Here’s the Solution  (Nov 19)

A clear illustration of why we often refer to experts as jackasses  (Nov 15)

Stock Market Bull 2018 Doldrums; is the Bear Ready to Growl (Oct 28)