The Federal Reserve intends to print money until the economy is healed, yet stocks trade down and gold/silver have plunged. There is an extreme sense of cynicism in the air, also fueled by the lack of progress on the Fiscal Cliff front. It is clear to any market participant that the help of the Fed has been the only thing holding this economy and stock market together.
You will hear voices in the wilderness, suggesting that “tax cuts don’t matter” because people are rich as fuck and the economy will do just fine. These people need to retake their econ 101 courses and learn that when you take money away from people, they spend less. Government is always the worst stewards of capital and they don’t really give a shit about stocks, except when collecting capital gains taxes.
In other words, they want to have their cakes and eat them too. This is a very delicate line to tow. My money is heavily biased long and I am at my lowest cash levels in a month, at around 15%.
Today’s market teaches us that nothing is guaranteed. We were supposed to rally yesterday and today, but instead we reversed and plunged lower.
That is the stock market and sometimes it’s a fucking bitch.
If you enjoy the content at iBankCoin, please follow us on Twitter
Might have been a bit of “buy the rumor, sell the news” going into the Fed day on Wednesday.
We came out of that bottom in mid-November like a rocket, and have put in an awesome Bull move from there. We’re heading into one of the most bullish periods already bought up.
Couple of down days would set up some nice pullbacks to the 20-SMA or RSI(2) mean revert trades.
FYI .. not suggestion we don’t plunge straight down 30% from here into Christmas. We still could.
Typo. Should be “…not suggesting…” etc…
A game.
Edit buttons to not exist on my blog, just like logic does not exist at Puma Punku.
I love Puma.
“expect when collecting capital gains taxes.”
A-game.
To exist or ‘to not exist’, that is the question.
http://www.youtube.com/watch?v=j9w-i5oZqaQ
who is john galt? where is jake gint?
Closing deals, my brothah.
This is when they get you to run away, just in case you were wondering….
______
What do I have in my hand, is it the backbone of the clam?..come on USD, lets see how the Flash PMI data will show us tonight. BTW, you know Container Ships are actually cutting routes over the holidays due to lack of interest..fwiw.
Happened every year for the last 27 that I’ve been shipping by ctnr vsl.
I didn’t know that…which routes??
BOOM! Massive end of the day, zero volume move under way
Turned out to be less than massive. Market is more & more tricky lately.
Also, we all know that a deal on the “fiscal cliff” will come through eventually. Should be a sizable rally if that happens unless the move off the November bottom WAS the fiscal cliff “kick the can” rally.
Everyone of both parties does want to have their cake & eat it too– which is why the budget deficit got so high.
I don’t know how we would pay off the debt except through higher taxes though. Not that I want to pay them either. But get this– Neither party is willing to propose additional spending cuts. Because no one wants them.
Why Republicans Can’t Propose Spending Cuts
http://nymag.com/daily/intelligencer/2012/12/why-republicans-cant-propose-spending-cuts.html
Ads embedded in the comments section now eh? Not a bad idea actually.
Those are ping backs, not ads.
Interesting, never heard of those before. So anyone the links to your blog on their site gets a tag here?
correct. It’s built into wordpress.
Would be cool if you could add ads.
The market will recover but not this week.
Please vote for ElizaMae. She is my elementary school crossing person and is very nice except maybe for the time I got yelled at for throwing snowballs at Eddie Haskell.
Hi Neighbor Fly. I am reporting in after the White house Holiday dinner last night but I have to be quiet. I am trapped under the President’s bed and the Obama’s are… shall we say getting comfortable. I hear Issac Hayes music.
Sitting to my left was Al Sharpton and to my right was James Hoffa. Sharpton kept looking at me and asking if I have ever been to the Crown Heights Liquor Store. The Hoffa guy is just mashugana and kept asking me if I have seen his Daddy.
The first dog Bo was pretty cool but who knew he would get diarrhea from eating toffee pudding. And then when I said, “Please pass the Benghazi” they all stared at me. I meant to say please pass the benihana sauce.
There was plenty of discussion about nationalizing Exxon but it’s to be a secret.
By the way a guy named Ben who says he is a Federal Reserve guy says hi to you and Mrs. Fly. Says he saw you filling up the car at the WaWa on University Place in Princeton.
Gotta go.
Did they serve original or crispy?
Couldn’t get any warm fellings about anything today…My broker telling me they changed their name to Mayan Securities didn’t help.
Trying to vote for Eliza butit will not register. Maybe because I am doing this on my mobile. while sitting in a Tim Horton’s in Canuckistan…..?
Aren’t folks liquidating assets here? Or do some traders really believe that 0bama and Boehner can actually come to an agreement, putting Amerika back on track like it was in the 80’s and watch the market zoom ever higher.
Why is my EXK not higher, that is the question that perplexes me.
Is it too late for dad to enter the blogger race? He’s looking for something to do.
I like the idea of a last minute write-in.
from the Congressional Research Service:
High-End Tax Hikes Would Have ‘Negligible’ Impact On Growth, Revised CRS Report Says
http://www.huffingtonpost.com/2012/12/13/high-end-tax-hikes-crs-report_n_2295737.html.
And what affect will high end tax hikes have on the deficit (or anything else, for that matter), fucked face?