Hedge funds are back again and ready to short the market!

I checked the SEC filings and found that the 75% of the hedge fund managers who liquidated their funds last fall due to poor performance have got back in the game and are shorting the market big time, especially commodities and emerging market. they have the money and the fire power and will take the market back down to 6500. these guys know the economy, and are good, and I would not bet against them.

I hadn’t read anything from the oracle in a while. he called the V bottom back in March very accurately. i should have listened to him but i thought he was crazy then. but he was right. i won’t make that mistake again.

Here’s the article from March 15th.’ (Market is reaching it’s bottom)
”
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The markets ARE manipulated, once you as a small investor come to agree with this statement then you can take the necessary steps to prevent yourself from being wiped out by ALWAYS keeping this in mind that Manipulated markets WANT you to act in a certain manner at certain times, they want you to buy into the latter stages of a bubble as the manipulators distribute, and the market manipulators want you to SELL into Market Bottoms and early bull rallies when the manipulators are accumulating.
…
Now watch ! How this STEALTH bull market will consistently be recognised as just a bear market rally to sell into and NOT to accumulate into. All the way from 6,600 to 7,600 to 8,600 and even beyond, the move will be missed by most as consistently bearish rhetoric and data will ensure only the smart money accumulates, for the small investor has now become Conditioned to the Bear Market Rallies of 20% and subsequently plunges to fresh lows. Many, many months from now, with stocks up 30%, investors will then WAIT for THE BIG CORRECTION, THE RE-TEST to buy into the apparent BULL Market , Well these investors will still be waiting as stocks pass the 50% advance mark, AGAIN only those that will have profited are the hedge funds and fund investors (Smart Money) WHO HAVE BEEN ACCUMULATING , as I elaborate upon next.
”

Here is the article from November 28th (Market is reaching its peak)

Here are some highlights

“Governments cannot change the primary trend of the economy, they can only destroy the currency and destroy confidence through their irrational and dangerous acts designed to protect the few”

“This is a classic flight to safety, so where’s the fire? The big money that moves markets apparently sees what’s coming next in the equity markets and they don’t like it. Just like last year, the bond market is telegraphing the next wave down in stocks. Big money sells/distributes their equities to the public, escapes to the “safety” of government bonds, then magically the market starts to crumble on any bearish news and “buy the dips” doesn’t seem to work any more.”

“Sentiment is back at an irrationally bullish extreme at a time when economic fundamentals have deteriorated further despite what you hear on CNBC”

“The “dumb money” crowd (of which I sometimes am a card-carrying member despite my best intentions) has a very short memory. People think helicopter Ben can just guarantee everything and the stock market will keep rising as the dollar keeps falling. The dollar may keep falling, but that doesn’t mean the stock market won’t have another bear leg down! “Dollar down, stocks up” works until it doesn’t. If you’re a hard core inflationist and subscribe to this horribly misguided oversimplification of the relationship between currency fluctuations and risk assets, explain why stocks didn’t go up all through the 1970s. The 1973-1975 bear market was the worst of the last 40 years until the 2007-2009 bear came along! You’ll also have to explain why all the money/debt printing, bailouts and government guarantees didn’t prevent the Great Panic of 2008 (does anyone remember the massive government interventions related to Bear Stearns, Fannie Mae, etc. that “saved” the market from collapse before it ended up collapsing anyway?).”

- Gienny

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