It’s Tuesday morning, and I’m still reeling from yesterday’s momentous action, and by momentous I mean one thing – the beginning of the end for THE MOST IMPORTANT STOCK IN THE WORLD – Bank of America. Sure, plenty of other things occurred yesterday – all bad, as always – but as I have been writing for several weeks now, the ONLY weapon left in TPTB’s arsenal is PRINTING MONEY and MANIPULATING MARKETS, which yesterday shot blanks. But before I get started, below is a link to my weekly podcast with the indomitable Kerry Lutz of the Financial Survival Network, taped yesterday afternoon.
I’ll get to yesterday’s atrocious PM suppression in a moment, but first I want you to see what I mean about BAC’s importance, the LARGEST BANK IN THE UNITED STATES and top candidate for a massive bailout or, god forbid, bankruptcy. Could it be Warren? I mean, could it REALLY be?
This Fall, the PPT’s game plan has been to keep the world’s focus on Europe, which has the same set of problems as the U.S., but one small disadvantage – its individual nations cannot print unlimited amounts of money like the U.S., or the U.K., for that matter. Thus, the U.S. and U.K. have used this advantage to paper over their debts with more debt, while the focus of the world’s media sticks to Europe. Even the U.K. has fallen into the crosshairs in recent weeks, as its arrogance at the EU Summit, outsized debt load, and poor performing bank stocks (RBS, LYG, BCS, for example) make it clear that England’s fate, irrespective of its unlimited printing press, is tied to Europe.
Conversely, the PPT’s maniacal support of the Dow while all else crumbles, to the point that it’s actually still UP 2% for the year while the rest of the world CRASHES and BURNS (except for GOLD, which is up 14%), has comfortably kept the U.S. “market vigilantes” away. It hasn’t hurt that the Fed has dramatically ramped up “Operation Twist”, monetizing Treasury Bonds with a vengeance never before seen, the Cartel has gone berserk attacking PAPER gold and silver via “OPERATION PM ANNIHILATION,” the dollar has seen “safe haven buying” thanks to the European collapse AND fallout from the Cartel’s PM attacks, and, of course, U.S. government has gone on an economic statistic fudging spree the like that even I’ve never seen before, particularly its falsified reduction of weekly jobless claims this month, which as always has no correlation at all to the real world.
Back to yesterday’s action, take a look at the chart below of Bank of America, which FINALLY broke through the key $5.00/share level around 3:00 PM EST, after having been supported ALL DAY long in the $5.00 – $5.05 range by the PPT. I have been watching BAC like a hawk, to the point that it has been the stock atop my trading screen for MONTHS, so I can analyze the PPT ALGORITHMS -bids and asks – all day long.
I kid you not, for the past few weeks, the bid volume has been higher than the ask volume roughly 99% of the time, with HUGE bid size constantly showing underneath the primary bid ALL DAY LONG. In other words, the polar opposite of the perpetual action in GLD, SLV, and major mining stocks like SLW, which nearly ALWAYS show higher ask volume than bid volume. In other words, Ladies and Gentleman, there is NOT A DOUBT in my mind that the U.S. government has been spending tens of millions of dollars each day to prop BAC up, adding kerosene to their manipulative fire – such as faux Warren Buffett investments and emergency, GLOBAL Federal Reserve “swap facilities” – whenever the stock showed particular signs of weakness.
But finally, less than three weeks after the infamous, unlimited Fed “swap facility” was announced, BAC succumbed to the selling pressure – real plus naked – and plummeted through $5.00/share, taking the entire PPT-supported Dow with it. For those that doubt my analysis that BAC is THE MOST IMPORTANT STOCK IN THE WORLD, take a look at its chart below, compared to the Dow. Notice how the two charts are nearly identical, with the Dow plunging 100 points instantaneously with BAC’s break of the $5.00/share level, below which it becomes non-marginable, and thus subject to mandatory selling amongst many of the large mutual and hedge funds that hold it.
Of course, the PPT fought to the very end, generating perhaps its 10th straight HAIL MARY rally in the day’s final minutes. It may seem small in relative scale, but no PPT attempt was larger in market importance, as the effort was concentrated solely on BAC, which magically rocketed up from $4.92 to $4.99 under the upward pressure of literally tens of millions of dollars worth of BUY ALGORITHMS. All for naught, however, as at the close more than 2.5 million shares were offered at $4.99, preventing BAC from breaking through; resulting in its lowest daily close since February 2009. And, by the way, take a look what happened to BAC when it broke through $5.00/share then – BAM! Right down to $2.00/share within weeks!
In other words, YES, Bank of America is in BIG trouble, and you can bet that today the PPT will be out in FULL FORCE trying to prop it back up before the mandatory margin selling orders kick in!
As for gold, it hung in well yesterday, falling just $4 or so in NYSE trading, but per the below chart of COMEX PAPER action, it was just another day of “same ole, same ole.” Gold surged above the KEY ROUND NUMBER of $1,600 at 8:00 AM EST, then had its typical collapse at EXACTLY the 8:20 AM EST COMEX OPEN for no reason at all. Then it tried to recover, when just after the 10:00 AM EST PM FIX, BAM…its daily WATERFALL DECLINE, cracking it well below $1,600/oz yet again. A third attempt to rise just after the 12:00 PM “cap of last resort,” which kicked in an hour later than usual when, whattya know, gold rose up to the KEY ROUND NUMBER of $1,600 yet again. All along, of course, silver was being pummeled, down more than any other commodity yesterday, for one reason, and one reason only – to prevent gold from rising above the KEY ROUND NUMBER of $1,600/oz, and with it silver above the KEY ROUND NUMBER of $30.00/ounce.
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