CNBS Telegraphing Geithner’s Next Punch?
The market is on the precipice, breaking through technical support, ready to crash. Kudlow is preaching the wisdom of owning gold (totally contrary to every fiber of his being). It’s a set-up.
With the market crashing, the shorts are loading up for the ride down. These shorts serve as fuel for any manipulation that can be managed through "open mouth operations" by the Fed and/or Treasury. The technicals in the market call for either a crash or a bounce right here.
Art "Crashin" on CNBS just telegraphed the next market move. CNBS has been floating the concept that the government is going to officially nationalize the banks. Rumor is it will happen this weekend. This is causing equity holders of financials to sell. The markets CANNOT move up again unless and until the financials do.
All Geithner has to do to cause a short squeeze bear market rally (albeit temporarily) is announce that there are no plans to nationalize the banks. It doesn’t have to be true, he just needs to say it.
The Plunge Protection Team is hard at work trying to fleece the very last dollars from speculators through the whipsaws they intentionally cause.