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inthemoneystock (< 20)

Why This Latest Rally Is Just A Scam By The Institutions



February 18, 2014 – Comments (3) | RELATED TICKERS: SPY

The markets find themselves near all time highs once again, just two weeks after it appeared the sky was falling. So what gives? Is the market headed for another 30% move higher in 2014 or is there an epic collapse on the horizon? All signs point to a classic scam by large institutions to lure the small investor into the market prior to a 2007 type fall later this year and in 2015.

The media and analysts have piled back on the buy-the-dip commentary. Investors are pushing more capital into the markets every day, in many cases they are borrowing money to do it. The use of margin is at all time highs. The last time it was at all time highs was in 2007, prior to the financial collapse. History tells the truth and ultimately there are far too many similarities to ignore. For the record, the similarities not only mimic 2007 and 2000 prior to the epic drops but also going back as far as 1929. Many 'experts' and media commentators are saying there will be no collapse. Considering they are manipulated by the big banks...of course they would say that.

First, it is important to understand the game that is played. Large institutions use emotion to take money from the smaller investors. There are 90 million Americans that invest and less than 1% avoid being caught in this game. How does it work? Using the media and analysts along with the stock market moves, they pull the strings of investors to get them in and out when they wish. That means getting them to buy at the highs on a market and getting them to sell at the lows. Have you ever wondered why everytime you enter a stock it seems you are on the wrong side? That is the game being played on a minor scale.

How do you avoid the game? Simply do the opposite of what your 'gut' is telling you. If you feel like you should buy the market? Stay in cash or short it. If you are extremely scared, too scared to buy the market...then buy it. If the media is pumping Twitter (TWTR) like crazy at $75 (like they did a few months ago), short it. If the media and analysts are trashing a stock, buy it. A great example was when J.C Penny fell just a few weeks ago to $5.00. The media was trashing it and many gurus were saying it was going to '$1.00'. Yet here it sits with a 20%+ gain at $6.10. This works so well it is almost scary.

Why do the institutions do this? Simply put, it is to profit. It all comes down to the mighty Dollar. When the markets or a stocks get too extended, the big players need to get out. By hyping those stocks, they lure the small investors into the market and can sell right to them. Once the institutions unload, the markets fall and the small investor loses their money. When low enough, the fear hype will reach a level that causes 'long term investors' to sell their positions right to the institutions. Once this happens, the markets can go higher again.

This latest rally and bullish sentiment in the media and analysts is just a way for the big institutions to get you in the market before the drop it. Read the signals and think logically. 

Gareth Soloway

3 Comments – Post Your Own

#1) On February 18, 2014 at 8:39 PM, awallejr (56.97) wrote:

Gareth you are a "chart" guy.  Do me a favor and take a look at the chart of S&P starting March 9, 2009 to present and tell me what you see.  I will tell you what I see and that is a healthy move up with various corrections on the way. 

So yes buy the dip.  Institutions don't give a rats arse about luring retail investors in.  Retail investors are peanuts to them. 

Once the institutions unload, the markets fall and the small investor loses their money.

ONLY if they SELL.  Now if they hold and add on the dips they can make better money than from a money market account that pays .003% interest.  

Go buy AINV, BBEP, KKR and collect your income.  Reinvest that income on a down day for the market.  And there ya go.  The retail investor grows his income and takes advantage of any crashes.  

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#2) On February 19, 2014 at 1:19 PM, ryanalexanderson (< 20) wrote:

Yeah, but starting the chart at March 9 is, of course, the worst cherry picking ever. A chart from anytime pre-1995 shows a relatively normal economy followed by a set of cycles of 7-year low-interest boom -> bust -> 7-year lower interest boom -> bigger bust -> 7-year zero-interest + QE boom -> ...?

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#3) On February 19, 2014 at 5:05 PM, awallejr (56.97) wrote:

Not cherry picking at all.  That was the starting point of the current bull market.  The last 2 major crashes had specific causes.  You had a ponzi dot com bust in 2000/2001.  And you had a massive financial meltdown in 2008/2009.

I don't want to hear how the chart predicts.  I want to hear about potential causes and events.  He argued the market was going to crash last year and it rose 30%.  Gareth is starting to make Peter Schiff look good.

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