Norcini – Trading “Extremely Violent” & Will End in “Disaster”
March 29, 2012
Today legendary Jim Sinclair’s chartist, Dan Norcini, told King World News the destructive policies of the Fed are now wreaking havoc in key markets. Norcini described the trading environment as “extremely violent” and said the Fed’s experiment will end in disaster. Norcini detailed out exactly what is taking place and what investors and traders must be aware of going forward: “We have tremendous whipsaw action in commodities. It’s so wild right now in terms of the trading swings. We have had these markets reacting to recent comments out of the Fed discussing additional accommodative monetary policy being required because of weakness in the economy.”
Dan Norcini continues:
“Initially you had money rushing into stocks and commodities with almost everything trading higher across the board. But for the last two days traders have looked at the data and jettisoned stocks and commodities. The bottom line is you are seeing these very large swings of say 2% to 3% per day in key commodities such as copper and silver.
We are also seeing big swings across the grain markets as well. Huge upside moves are followed by huge downside moves intraday. These false buy and sell signals and wild swings have been wreaking havoc in these markets and crushing to many traders.
In my opinion, the Fed and the Working Group on Financial Markets have been actively manipulating key markets. The Fed has been doing this manipulation in an attempt to push investors back into the stock market and out of commodities and hard assets.
Bernanke assists in this manipulation by jawboning key markets. As an example, if the commodities are showing too much strength, he or another member of the Fed will come out and sound hawkish. The Working Group on Financial Markets then goes in and starts putting heavy pressure on key commodities, which triggers a cascade of sell orders.
This is, effectively, a modern day version of price controls….