Former DAG Rod Rosenstein had the support of two cabinet colleagues

Updated on

The King Report October 10, 2019 Issue 6110 

The overnight ESZs rally disappeared during the last two hours of Asian trading.  This has become a pattern.  Traders bought ESZs when Europe opened, another common pattern.  ESZs and European stocks surged on an innocuous report that China would consider a limited trade deal with the US if Trump would refrain from imposing new tariffs.  China would offer ‘non-core’ concessions like the purchases of agricultural products while not making any concessions on major trade issues.

This, of course, is a nothing burger.  China needs agricultural products to feed its massive population.  Nevertheless, headlines on this induced algos and lemmings to get jiggy on stocks and ESZs.  So, for the umpteenth time over the past few years, there was a rally on China-US trade hype.

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Q3 2019 hedge fund letters, conferences and more

China Open to Partial Deal if Trump Removes Tariff Threats

China would accept a limited deal -- like those it has sought since 2017 -- as long as no more tariffs are imposed by President Donald Trump including two rounds of higher duties set to take effect this month and in December, the official said. In return, Beijing would offer non-core concessions like purchases of agricultural products without giving in on major sticking points, the official said, without offering further details… the Financial Times reported that China is offering to increase purchases of American soybeans to 30 million tons annually from 20 million presently…

After the rally on the trade-deal nothing burger, ESZ traded sideways with a downward bias from 5:08 ET until a modest rally appeared ahead of Powell’s 10:30 ET speech.  He said nothing new or noteworthy; so, ESZs and stocks retreated.

Powell Repeats U.S. Economy Is in a ‘Good Place’ Despite Risks

A moderate Noon Balloon appeared abetted by the front running of the FOMC Minutes from September 18.  Like the Powell speech, there was nothing new or noteworthy in the minutes, so stocks and ESZs went inert.  Minutes before the final hour, the rally resumed, stocks made new session highs.  ESZs and stocks plodded higher until a sharp decline appeared over the last 20 minutes of trading.

The media reported that the late decline was due to a Reuters report that China has lowered expectations for the trade talks.  That’s an old story (Tuesday); like the story that induced the early rally yesterday!  Algos and lemmings react to old news, which is a major factor in the debasement of the equity market.

Positive aspects of previous session

Overnight ESZ rally on the usual buying

The umpteenth rally of US-China trade deal hype occurred

Negative aspects of previous session

No energy, rally solely due to dubious trade-deal hopes

Ambiguous aspects of previous session

What will the Fed do if stocks keep falling while they cut rates?  QE 4?

First Hour/Last Hour Action [S&P 500 Index]

First Hour Up; Last Hour Up

Previous session S&P 500 Index High/Low: 2929.32; 2907.41

Pivot Point for S&P 500 Index [above/below indicates daily trend for traders]: 2918.71

Elizabeth Warren Unveils [$1T over 10 yrs.] ‘Environmental Justice’ Plan for Poor Communities

The new plan also plan reiterates her proposal to “hold the finance industry accountable for its role in climate change” by requiring banks and other companies to “disclose their greenhouse gas emissions and price their exposure to climate risk into their valuations.”…

“Beware the greedy hand of government thrusting itself into every corner and crevice of industry.” --
Thomas Paine

@realDonaldTrump: The United States has spent EIGHT TRILLION DOLLARS fighting and policing in the Middle East. Thousands of our Great Soldiers have died or been badly wounded. Millions of people have died on the other side. GOING INTO THE MIDDLE EAST IS THE WORST DECISION EVER MADE IN THE HISTORY OF OUR COUNTRY! We went to war under a false & now disproven premise, WEAPONS OF MASS DESTRUCTION. There were NONE! Now we are slowly & carefully bringing our great soldiers & military home. Our focus is on the BIG PICTURE! THE USA IS GREATER THAN EVER BEFORE!  [Trump returns fire at Bushies & Neocons for their recent attacks on him.]

Burisma Holdings Paid Joe Biden $900,000 for Lobbying Activities: Ukrainian MP
Derkach publicized the documents at a press conference at the Interfax-Ukraine agency Wednesday as he said the records, “describe the mechanism of getting money by Biden Sr.”  “This was the transfer of Burisma Group’s funds for lobbying activities, as investigators believe, personally to Joe Biden through a lobbying company. Funds in the amount of $900,000 were transferred to the U.S.-based company Rosemont Seneca Partners, which according to open sources, in particular, the New York Times, is affiliated with Biden. The payment reference was payment for consultative services,” Derkach said…

The greater fools that bought stuff on the China-US trade deal hype got clowned, again.

US and China make no progress on key trade issues in two days of deputy-level talks, sources say

  • The Chinese delegation refuses to talk about forced technology transfers, a core US grievance in the negotiations, a person with knowledge of the meetings says
  • High-level talks are expected to last for only one day, with Liu He and his team now planning to leave Washington on Thursday

Today – ESZs traded at 2882.50 at 18: 38 ET, -36.50. An hour later, ESZs spiked to almost unchanged on this:  CNBC’s @kaylatausche: WH says SCMP report is inaccurate. Spox Judd Deere tells me: "We are not aware of a change in the Vice Premier’s travel plans at this time.”  Senior admin official says Liu still scheduled to depart Friday evening, and dinner is on for the delegation Thursday evening in DC.

Minutes later ESZs collapsed on this: @EdwardLawrence: Chinese trade sources tell Fox Business that the Chinese Trade Team will leave after one day of talks on Thursday. China Trade talks cut short.

Barring a sudden change in the nature of the trade talks – or the announcement of a massive QE scheme, Thursday’s NYSE open will be significantly lower.  The key will be the nature of rally that appears.  It will largely be the work of traders, so they will not hang around for long.  Bulls are hoping that the mystery force that creates ‘V’ rallies when technical conditions are at breaking points will appear.

We are still in the Groundhog Day of trading patterns punctuated with news and tweets.  ESZs are -23.50 at 21:00 ET.  Thanks for playing.  PS – Look for a rally into StL Fed Prez Bullard’s speech at 15:0 ET.

The S&P 500 Index 50-day MA: 2936; 100-day MA: 2929; 150-day MA: 2909; 200-day MA: 2848

The DJIA 50-day MA: 26,468; 100-day MA: 26,432; 150-day MA: 26,308; 200-day MA: 25,900

S&P 500 Index support: 297, 2900, 2880, 2870-75, 2855-60, 2848 (200 DMA), 2835, 2822-25

Resistance: 2922, 2930-34, 2940, 2955-60, 2965, 2975, 2985-87, 2993, 3000, 3008, 3014

Expected economic data: Sept CPI 0.1% m/m, Core 0.2%; Jobless Claims 22k, Continuing 1.651m; SF Fed Prez Daly 12:30 & 15:30 ET; St. Louis Fed Prez/Uber-dove/stock market juicer Bullard 15:00 ET

S&P 500 Index – Trender trading model and MACD for key time frames

Monthly: Trender and MACD are positive – a close below 2502.93 triggers a sell signal

Weekly: Trender is positive; MACD is negative – a close below 2823.03 triggers a sell signal

Daily: Trender and MACD are negative - a close above 2998.28 triggers a buy signal

Hourly: Trender is negative; MACD is positive - a close above 2941.64 triggers a buy signal

Rod Rosenstein bombshell

Beaucoup rumors about what Durham is uncovering have been circulating for days.  We have refrained from mentioning them because they are profound but unverified.  In lieu of the report that Durham has expanded his investigation and its time line to when Mueller was appointed, we will note that one rumor is Durham has emails between two of the top figures in Spygate in which they state that the dossier can’t be verified but they will use it anyway to get FISA warrants.

Maria Bartiromo said she is hearing the IG Report will “be out on October 18 and it’s about as thick as a telephone book and goes beyond FISA abuses…”

James Comey was ‘troubled’ by Loretta Lynch’s ‘pro-Clinton bias,’ book claims

Comey was “nagged in his distrust of Lynch’s impartiality” after he received a report from a “highly placed informant” in March 2016 suggesting the AG was trying to nix the investigation, reporter James B. Stewart claims in his new book “Deep State: Trump, the FBI and the Rule of Law,” released Tuesday.

The document contained an email that Deborah Wasserman Schultz, then-chair of the Democratic National Committee, reportedly sent to an executive at Open Society Foundations, founded by billionaire Democratic donor George Soros, Stewart wrote.  The email assured executive Leonard Benardo that “Lynch wouldn’t let the Clinton investigation get very far, suggesting that Lynch would protect Clinton.”…

FBI lover Lisa Page LIED about her affair with Peter Strzok, new book reveals, which also tells how 'biased' Loretta Lynch stopped a special counsel taking over Hillary Clinton email probe

  • Another revelation is former Deputy Attorney General Rod Rosenstein had the support of two cabinet colleagues for invoking the 25th Amendment to remove Trump from office
  • Stewart claims former Chief of Staff John Kelly and former Attorney General Jeff Sessions said they might back it

Stewart also reveals that former FBI director James Comey had deep concerns about the impartiality of former Attorney General Loretta Lynch.  When it came to the investigation into Hillary Clinton's use of a private email server, Comey considered asking for her to appoint a Special Counsel because he was so alarmed - but she rebuffed him...

Rod Rosenstein “Unindicted Co-Conspirator”? – Durham Expands Timeline for Probe…

The reason Rosenstein’s behavior remains a high-priority is simply because without his ongoing participation and authorization in 2017 and 2018 the Weissmann/Mueller probe would not have been able to continue… There are four central actions taken by DAG Rod Rosenstein that frame the four corners of his active involvement within the “small group” coup effort…

Did Mueller lie to Congress about meeting with Trump before he took the special counsel job?

It seems increasingly clear that Trump was being set-up, and that Mueller was neither forthcoming nor honest during the meeting.

It has always been suspicious that Robert Mueller met with President Trump in the Oval Office the day before he was officially appointed by Deputy Attorney General Rod Rosenstein to investigate Trump.

Newly uncovered documents show that Mueller and Rosenstein had been privately communicating in the days before that meeting. They worked sedulously to keep it a secret. Trump had no idea that Mueller was already on board to serve as special counsel…

President Trump: “Mueller wanted very badly to have the job as FBI director and to return to the FBI. I didn’t want him. I rejected him. By the way, how much of a conflict is it when a guy comes in wanting a job, I say no, and the next day he’s your special prosecutor? It’s outrageous.”… The president’s account of his meeting with Mueller was corroborated by his then-assistant, Madeleine Westerhout, who arranged it and was privy to its purpose and content… multiple administration officials backed up this account…

So, has Mueller been lying about this all along? Consider his July 24, 2019 testimony before congress:
Mueller: “My understanding was I was not applying for the job.  I was asked to give my input on what it would take to do the job.  Question: So it is your statement that you didn’t interview to apply for the FBI director job?  Mueller: That’s correct.”… Under questioning from Congress, Mueller was directly asked whether the president discussed with him the firing of Comey.  The special counsel replied, “Cannot remember.” Right… More likely, the special counsel knew his disqualifying conflict of interest had been exposed and sought to deflect it by claiming total memory lapse…

My colleague Catherine Herridge has reported there is new scrutiny [by Durham] of the Mueller appointment and the coordination between Rosenstein and Mueller in the days before he was named special counsel.  As Trump told me, “Bob Mueller should never have been allowed to do this case.”  The evidence continues to mount that the president was right.

@1776Stonewall: You think about how many bs process crimes that the Mueller investigation handed out, and yet Robert Mueller himself has now been caught lying under oath, as multiple emails prove. Just another example of how crooked this entire thing is. Doubt the media will even report it

Anti-Trump Whistleblower Attorney Worked Directly For James Clapper

Charles McCullough, an attorney now representing the whistleblowers with Andrew Bakaj, a former staffer for Sens. Chuck Schumer and Hillary Clinton, was previously the inspector general of the intelligence community (ICIG) at the height of the Clinton email scandal

Solomon: Document reveals Ukraine had already reopened probe of Hunter Biden-linked firm months before Trump phone call - "The U.S. government had open-source intelligence and was aware as early as February of 2019 that the Ukrainian government was planning to reopen the Burisma investigation," he claimed. "This is long before the president ever imagined having a call with President Zelensky," he added, noting Petro Poroshenko was still Ukraine's president at that time…

"That is a significant change in the timeline -- it was omitted from the whistleblower's complaint, and the question is did he not know it or did he exclude it because it didn't fit the narrative he was trying to write," he continued. "That's a question for Congress to answer."

Solomon also said bank records from Burisma, acquired through FBI raids, reveal that Hunter Biden was paid between $166,000 & $200,000 per month, not the reported $50,000.

Sen. Cotton Demands Answers from Intelligence Community IG

Senator Tom Cotton (R-Arkansas) today sent a letter to Michael Atkinson, Inspector General of the Intelligence Community, after his evasive testimony before the Senate Select Committee on Intelligence during a closed hearing on September 26. Inspector General Atkinson repeatedly refused to answer questions about the political bias of the "whistleblower", despite being in a closed session and despite this information being unclassified. The Inspector General wouldn't reveal this information to the Senate Intelligence Committee, but later revealed it to the House Intelligence Committee

Defense Intelligence Agency employee charged with leaking classified information to journalists

Henry Kyle Frese, a counterterrorism analyst, is accused in federal court in Alexandria, Va., of providing classified material to two journalists in 2018 and 2019. One report related to a foreign country’s weapon systems, court papers state.  A Justice Department statement said Frese, 30, “was caught red-handed disclosing sensitive national security information.”

@MatthewKeysLive: Court records say Henry K. Frese was following on Twitter the journalist he gave classified info to and was romantically involved with. I identified the reporter as CNBC journalist @amanda_m_macias earlier today; info on their accounts checks out.

@seanmdav: The DIA official who was arrested for allegedly leaking top secret intelligence to two journalists previously mocked Donald Trump for not understanding "OPSEC", or operations security.

Fox News’ Tucker Carlson: “During the 2004 election, which he lost, John Kerry openly bragged about soliciting support from foreign leaders against his opponent that year, the incumbent President George W. Bush”

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