Just gaze at the technical attractivness of the setup. Notice that it is the opposite of a momentum trade. It is a combo fundamentally attractive valuation combined with low technical downside risk. A sleep well at night double value. Quite amazing that this was not leaked…Aww heck, it was just a lucky pick…From CreateCapital/Coin Premium…
This company bought the old EG&G which cleaned up all the old U.S. Government nuclear bomb sites. They are experts. Do you think every nuclear plant will be gone through with a fine-tooth comb? Will there be cleanups and upgrades? You bet. From CreateCapital/Coin Premium.
There have been endless discussions today about “Black Swans”. The prevailing consensus is that all of these events, as bad as they seem to be, have not effected the world’s markets. If markets don’t crash on massive negative exogenous events, is it still a Black Swan? Just asking.
There is a Bloomberg article published today that I talked about extensively during my morning show. It is entitled “All Clear Sounded as the Markets Shrugs off Multiple Black Swans”. It quotes learned and experienced investment professionals who basically say that if they don’t go down, then they gotta go up. Value-added!
These recent events would almost certainly cost the market a sustained 10% correction–and it may just in the upcoming days. But these smart magazine writers and other business media folks continue to ignore the bearded elephant in the room. It took hundreds of billions of dollars to stabilize the Japanese market. Money which was created by their Central Bank out of thin air. They have taken a page from our Uncle, and why not? Investors in domestic markets have fallen for the free money, hook, line and sinker. And the reason our market won’t dip is the same as its ever been. Regardless of the news, the Federal Reserve continues to pump fresh capital into markets, daily, and that money is hypothecated at least 10:1 and then put to work in all manner of “investments”. I used to say that only a nuclear event could end the hold that free money has over the markets. Now, only a Supernova could derail it, until it is completed.
The numbers are staggering, yet the general public knows nothing of the true nature of how this works, even two years in. With the coordinated efforts of Central Bankers and the G-7, all that fresh money stayed the latest “Black Swans” from negatively affecting the markets and ensuring that the vast majority of Americans stay clueless.
Everyone is expecting the market to crap out once QEII is finished. My guess is that it will happen shortly before or shortly after. The Chairman’s comment about a self-sustaining recovery will finally be tested then. In the meantime, just buy the dip and chase the momentum or be left on the sidelines, like most sensible risk-adverse investors.
Comments »Have a look at the Daily chart of the SPX and notice the Bollinger Bands. After spending months above the “demarcation line” of the middle band, it broke during this little correction. The lower band was tested, pushed lower and then the markets reversed higher. Now we are pushing right back to the Middle band again. My guess is that even with all this “dynamic action”, we will be unable to vault over without the advantage of some time and “normal” ebb and flow. Please review enclosed chart.
I have not updated my blog as I’ve first been sunbathing then shoveling snow and shit. But the last posting says it all for any and all market timers. I will cut ‘n paste for you now if you’ve missed it. BTW–we are EXACTLY AT MY TARGETS.
As brokers have said through the ages, “I may not always be right, but I’m never in doubt”. Except this time I’m right. Have a nice day.
http://ibankcoin.com/scott_bleier/2011/03/17/the-bingepurge-market/
THE BINGE/PURGE MARKET
The outside events are almost unprecedented in modern times. Markets sold off, just to the point of being oversold for the first time in seven months–after being overbought technically the entire time.
The “world” has created trillions of dollars/yen/Euro’s etc. and forced it into the capital markets. Because after all, its all we’ve got. Even with the possibility of Japan being a “dead zone”, the market is due a bounce.
We’ve binged for months. We purged for days. Lather, rinse repeat. Expect a long trading range until QEIII.
Targets:
DOW 12k
SPX 1300
NASDAQ 2700
RUSSELL 810
The outside events are almost unprecedented in modern times. Markets sold off, just to the point of being oversold for the first time in seven months–after being overbought technically the entire time.
The “world” has created trillions of dollars/yen/Euro’s etc. and forced it into the capital markets. Because after all, its all we’ve got. Even with the possibility of Japan being a “dead zone”, the market is due a bounce.
We’ve binged for months. We purged for days. Lather, rinse repeat. Expect a long trading range until QEIII.
Targets:
DOW 12k
SPX 1300
NASDAQ 2700
RUSSELL 810
Happy St. Patricks Day! Stay safe…
Comments »
