It may be a surprise to many people, but stocks have absolutely no value whatsoever. Period.
Let me prove it to you. Let’s say you bought one share of AAPL today at the closing price of $374.60. You are now at risk of losing the entire purchase price. The only way your gamble is not at risk is if you were to get a certificate of some kind that guarantees that at some future date you can at least redeem the certificate for your original investment of $374.60. But that’s not the way it works, does it? No. You are gambling that at some future point in time a greater fool will come along and buy your tulips for a price higher than what you paid. In short, the stock market is nothing more than a legalized Ponzi scheme and if you aren’t fully aware of this, then you’re going to get screwed.
Over the last several years, my entire focus has been to search market indicators for clues about what the Big Boyz are doing, because it’s the Big Boyz who move the market up and down through manipulation. Contrary to popular belief, the market does not go up because stocks are worth more and more each day nor does the market go down because stocks are suddenly not worth as much today as yesterday. Since stocks have no value, then their movement is independent of some perceived value or lack there of. Stocks move in accordance to the way the Big Boyz want them to move and that’s all there is to it.
At the moment, the ruse is up, the emperor has no clothes, and the Ponzi scheme is unwinding. But don’t you worry about the Big Boyz, the mad men at the helm. They’ll do all right because they’ve positioned themselves to take advantage of the decline.
But what about you? Are you listening to those TV idiots who continue to tell you that you need to have stocks in your 401K, to be in it for the long haul, blah, blah, blah. I mean, think of the industry in place that benefits from your naivete’.
The stock market is all about making money. It is not about investing because stocks have no value.
As the market came down into the close today I marveled at the fact that people were buying and stopping the indexes from plunging into the abyss. Poor suckers who believe that stocks have value and that the value will increase were putting their money and future’s at risk.
This current market is best left to the Pro’s and their sophisticated computer trading platforms. The retail crowd is no match for HFT’s and their proprietary alogarithms. I say let them have at it.
$CYC closed lower today than it did during the summer 2010 decline. This index went up 400% from the March 09′ lows to its May 2011 high. The stocks in this key index represent the back bone of our economy and if the back bone is breaking then what’s that tell you about the rest of the market?
No time for a chart tonight.