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May 30, 2006

What really bothers me about this market, Tues., May 30, 2006, 3:26 PM

A couple weeks ago I wrote that this market was going to scare the wits out of you, and now you see what's happening. But do you really see what I see?

I am somewhat reluctant to say this without proof. But I believe the Little People are in for much more shock and awe. In fact, even though the Dow is down -150 points as I write, I don't think the worst of it has even started.

What I fear is happening at this point is that talking heads will be sent to CNBC to talk about a "goldilocks" economy " you know; the b.s. about "not too hot, not too cold". Meanwhile what is really happening behind the scenes is what is called sector rotation. This is in reality a time where the Gnomes are repositioning their holdings to where they want to be when the market truly collapses.

At the point they want this market to crash, they will be heavily positioned in put options and shorts, and they will conspire as a group of so-called "capitalists" to pull the plug. As market prices cave in, there will be no margin calls or suicides for this group, unlike among the Little People.

And when they feel that the People are most scared, they will conspire to form a bull raid that will quickly end the bear market and start the next long cycle.

This conspiracy by a few to screw the majority has been going on for as long as stocks have been traded. It was only after the Securities Act of 1933, in the depths of the Great Depression, did the Gnomes and the Bankers get together with the Administration of the day to enact legislation that would ensure no more margin calls or suicides for the leaders of the money center banks, and their friends.

Well Houston, there is a problem. A week ago you had a local jury say to the Gnomes and the Bankers that it's going to be much harder in future to do your dirty work. Now you are seeing that the People " with help from a few like Hon. Ron Paul " are onto your game, and spreading the word.

Confidence in the economy and in politicians is at extremely low levels. The People are fed up. They are going to seriously question just what another ‘Gold'man staffer is going to do for We The People.

Meanwhile, as the $USD sinks, there are traders in other countries who are taking advantage. Hasta la vista, baby. They are moving from stocks to gold.

And meanwhile, I am working on the Cara 100 reports so that I can have that part of the website ready in advance of The Big Day, when we all get going.

Posted by Posted by Bill Cara on May 30, 2006 03:26:53 PM | Category: Cara Today in the Market

Discourse

I've noticed a disturbing pattern on CNBC where sometimes one or more anchors seem to be perversely happy about the markets falling. Today, towards the end of the trading day, they said something like how today is horrible if you are a bull but great if you are a bear. Must be easy to be constantly cheerful when you're positioned correctly!

Posted by: tc [TypeKey Profile Page] at May 30, 2006 4:01 PM [link]

Don Coxe spoke in this week's broadcast about 'assymetry in the markets' - with the big offshore hedge funds having much more mobility than the little peanuts (I am one of the peanuts).

Also, why did Paulson finally agree to become the Treasury Secretary after declining before...that will be interesting to watch.

Posted by: bbcmoney [TypeKey Profile Page] at May 30, 2006 4:08 PM [link]

I always think how some of these Talking heads keep their jobs (and shows.) One of these guys even said that higher rates are good for the markets. What the #$%*.
Theire are the few good guys who provide facts to back up their case, and who it pays to listen too. Bill your on my list of the good guys.

go34
I am not a true follower of fib's but they have sure worked well on the NYSE as support and resistance.

Andy

Posted by: Andy [TypeKey Profile Page] at May 30, 2006 4:28 PM [link]

Bill:
It was a nice INTC ‘nibble' day and the Feds 6-mo ‘T' investment rate ballooning in @5.030% allowed for safe keeping until 'The Big Day'. We the ‘Little People' are also positioning ourselves. ;)

Posted by: C.Note [TypeKey Profile Page] at May 30, 2006 4:30 PM [link]

bbcmoney

"As top executive for Goldman Sachs, Paulson raked in more than $38 million in overall compensation last year -- better than a government salary of under $200,000 by a very long shot"... from Reuters 11:52am

Why give up that kind of income?

Posted by: tony [TypeKey Profile Page] at May 30, 2006 4:32 PM [link]

Tony - perhaps he is an honorable guy who wants to 'do something' for his country....let's watch what he does....is that rotten smell coming from Denmark?

Posted by: bbcmoney [TypeKey Profile Page] at May 30, 2006 4:51 PM [link]

https://www.oppenheimerfunds.com/pdf/prospectuses/goldspecialmineralsfund.pdf

Check Page 2 and understand in part, why PM equities have fallen so much as of late.

Posted by: JB [TypeKey Profile Page] at May 30, 2006 10:14 PM [link]

Naz futures are currently up $3.00 (11pm. est Tues) Possible huge injection of Repos coming tomorrow? If so, could be one of the biggest since 9/11.

Posted by: JB [TypeKey Profile Page] at May 30, 2006 11:18 PM [link]

Regarding to previous audio discussions, I listen to most Bloomberg podcasts at gym. They are freely available from Bloomberg web site. I also listen to "On the Money!" at http://www.onthemoneyradio.org/Listen.php. They also talk about other financial issues (insurance, taxes, real estate) on surprisingly sophisticated and intelligent level. Drawback is that the podcast is several days delayed from radio broadcast.

Posted by: biochemist [TypeKey Profile Page] at May 31, 2006 1:05 AM [link]

RE: Oppenheimer Funds Prospectus Gold Special Minerals Fund

I saw this earlier and almost puked. I don't know why it bothers me; the system has always allowed these financial institutions to collude. Anyway, just another tool in their kit to ma(ke)nipulate their markets (pun intended).

Posted by: cb [TypeKey Profile Page] at May 31, 2006 4:07 AM [link]

Some associates of mine have looked at other funds and report back that:

*The Gabelli Gold fund is authorized to loan 33%
*Oppenheimer will lend 25%
*The Tocqueville fund 33%
*Templeton gold fund 33%
*Fidelity 33%
*US GLobal allows for 1/3 but set an internal limit of 15% but TERMINATED the
program in 2003.

How does such a policy benefit the fund holders? Why would these companies engage in this practice, if it's detrimental to it's clients invested in the funds?

Posted by: JB [TypeKey Profile Page] at May 31, 2006 7:32 AM [link]