Even before the latest Eurozone bank run and the Facebook debacle, which will kill the IPO market for a while (UNDERSTATEMENT) the equity markets were under classic Distribution as we’ve pointed out on many occasions.
Certainly the April 17 date was a Clarion Call. But enough about the past.
We are now in the midst of giving back all of the “Europe is Saved” gains. Because, well, Europe is not saved. Frankly, there is little positive to hang your hat on except the hope for more Free Money. And that may not work either.
FACT: The reality of price is always transitory. Sometimes it pays to ignore what the market is telling you because it lies, regularly. But out of almost everyone who knew the truth of reality, only a few choose to heed its warnings. Now the market leadership, levitated by psudo-inflation, has crashed. The most gargantuan liquidity push in history has left the markets highly illiquid. Only the biggest and most defensive of issues have held up relatively well, in turn keeping the major indices close to positive for the year. These last holdouts will eventually succumb to the need for liquidity, as they always do. That will be coming soon.
Then, and only then, will the equity markets be set up for a proper washout and accumulation phase that will be infinitely more rewarding to investors.
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Where have your free chart predictions gone?
thanks scott. it seems like every country is a ponsi scheme of sorts. funny how a small country like greece can bring down all of the eu.