Do you remember Friday's intra-day chart of SPDR S&P 500 (ARCA:SPY), the ETF that tracks the performance of the S&P 500?
It is quite similar to what happened every day last week, with a
high-volume (relatively) sell-off followed by a recovery on almost no
volume into the close, giving us the impression that the markets are
flat.
Only Friday was a little different. On Friday, the market manipulators were so desperate to close the week on a high note and so greedy, that they also got damp and now we have some very clear evidence of what complete and utter nonsense this market is. Have a look here.
What do we see there? Despite a 0.45% rise in the S&P and a 0.39% rise in the NYSE, 0.4% in the Dow, 0.45% in the NASDAQ and 0.25% rise in the Russell, the fact is that there were far more shares declining than there were advancing. In fact, on the NYSE MKT (what used to be called the AMEX), declining volume outpaced advancing volume by 115%. 115%! Yet we get a 0.4% rise in the index?
On the NYSE itself, 2,079 stocks declined while only 1,057 (33%) of
the stocks advanced and there was 56% more volume to the declining
shares than the advancing shares yet, magically, 160 NYSE stocks made
new 52-week (and, often, all-time) highs while just 30 made 52-week
lows. That's 84% positive! Unbelievable, right?
It is unbelievable, as in – something that should not be believed by smart educated people. When you see a magician on stage sawing a woman in half or levitating – you might be amazed at what a good trick it is but you don't start believing in magic, do you? What if that magician asks you to bet your retirement on the fact that he is really levitating people or that his assistant can medically be cut into pieces and reassembled?
You wouldn't risk your money on such obvious fakery, would you? You
wouldn't give your hard-earned money to a person whose job it was to
deceive you, would you? Thus, do we need to put our money in this farce of a market? The action on Friday wouldn't even constitute a
"good" magic show: Yes – we can see the wires! The fakery is so
obvious a child would question those numbers vs the illusion of the
chart that the magicians produce. Yet people are literally betting
their life savings on this ridiculous fakery. Insane, isn't it?
