Oh Where, Oh Where Has All The Mattress Money Gone?

April 18th, 2012
in Gary's blogging

For that matter, when are all the investors with their hidden assets coming back? There are many questions regarding investor's returning and clearly lacking any comprehensible answers. Unfortunately what I see trading today are the investor-wannabees and uninformed sheeples being lured in for the almost daily slaughter. Some got their wool burned yesterday afternoon at the close when the market turned and declined further still in aftermarket trading. And like clock work, we saw the fleecing of the lambs again this morning.

Repeating what we have seen in past sessions is the markets rising from the manipulated morning ashes only to fall again bilking thousands of their monies. The melting up and buying are the ever present 'dippers' made up of mostly investor-wannabees, brazen day-traders and DaBoyz whom the latter are making out like bandits. (Pun intended) And when DaBoyz are finished rounding up the sleeple's, they will defrock them quickly and cleanly as they have been doing on a daily basis for the past several months. 

Follow up:

Unfortunately, unless the SEC steps in and cleanup DaBoyz' ponzi game, we will NEVER see these lost investors again, particularly the older folks. And really who can blame them when the dishonorable brokers of the world really don't care much about them so long as they can steal the monies with hair-brained schemes and outright dishonesty. I just had a phone call yesterday with such a scam, but that is for another day; that camp needs to be cleaned out too.

Most of the traders I know can deal with this obviously abominable market, but it has caused a lot of pain over the past 3 years getting to this point of understanding the new concept rules of manipulation. For the ones that only get dribbles of market news from questionable pundits such as MSNBC's Cramer, there is little hope for them; another closet to clean. And the game plays on as the sun sets on the bygone days of 'real' investing and honest profits for the sheeples. It also sets on the real people that made up the investment community in the first place.

Steve's article below has some interesting facts that back up my opinions on the lack of investor participation and low volume. He mentions volume was off 19% for January, but it has actually been closer to 30% YoY. We depart our Communion however with his belief that the market is on its way moving to higher levels, but still a very good read.

Where The Market Is Headed From Here by Steven Bulwa

. . . . many investors have yet to overcome their well-earned market phobia, firmly engrained by 3 market meltdowns in 9 years . . . losses that devastated so many working folks' 401ks. Volume in January 2012, the best January for the markets in 15 years was 19% lower than it was a year earlier. . . . evidence that many investors have packed up and have not returned.

The market's volatility matched with Government ineptitude and corporate malfeasance should give people pause. . . . Despite the market's recent advance, investors are not yet convinced it is time to get back in.

"Most investor money is just going under the mattress these days," says David Santschi, executive vice president of TrimTabs. And what isn't going under the mattress, is going into bonds."

That jibes with data from fund-tracking firm Lipper, a Thomson Reuters company, which found that investors pulled $3.6 billion from their stock funds through the end of February.

That's on top of the $93 billion they yanked out last year. Taxable bond funds, meanwhile, continue to charge ahead, with $43 billion in inflows year-to-date.

One of my favorite SA authors is Philip Davis and he pens a scathing paragraph regarding Cramer, whom I can't stand either, but Cramer is part of the 'Main Stream Neurosis Broadcasting Company' (MSNBC) and that should explain everything. It would also explain just who is in the market right now because it isn't the wary, the burnt and the ones who plain don't trust this obviously manipulated financial casino.

Tempting Tuesday: Baa, Baa To The Sheeple by Philip Davis

Cramer said in last night's show that the Dow is composed of big international companies that were finally able to break free from concerns over Europe's debt crisis. For the entire month of April, these stocks were held hostage to the Europe's debt troubles. Cramer said most of these companies have no real ties to Europe, though, so the fears are overblown.

We ended up with what amounted to a frontsie-backsie day where all of the last month's winners, stocks that were unaffected by the weak euro and the miserable European stock markets, got pummeled, while the losers that had become risk free shorts because of an expected European decline were actually able to rally.

What a moron! Seriously - "frontsie-backsie?" . . . Is it really possible, in this day and age, that people still believe America is immune to what is happening in the rest of the world?”

As a side-note, one commenter made has an interesting theory that “. . when the Supreme Court overturns Obamacare at the end of June? Will the market react when the future national debt declines 30%? “ Probably yes and just in time for the summer rally. Something to keep in mind as we enter the seasonal market decline.

As we are seeing right now, today, this very moment, some folks are buying when ALL of the signs of a decline are written on the wall of worry. Not to mention the normal seasonal decline also in the works. It doesn't make much sense to the successful traders I know, but this mediocrity and greedy thinking continues to move forward with more fodder for DaBoyz. I am afraid that until the pigs are removed from the creek, we won't see clean water for a while.

Until that happens, I sadly suspect the money sewed into the mattresses of the World will stay there for years to come and the markets will continue their corrupt ways of doing business.

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Written by Gary

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