JUST CALL ME MR. HAPPY!
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Joined Jan 19, 2010
717 Blog Posts
BUY some EUROPE?
Yahoo Finance BREAKOUT part 2
http://finance.yahoo.com/blogs/breakout/3-european-stocks-buy-now-despite-eu-turmoil-120707195.html#
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Economic Numbers will Suck It. Excellent!
Remember this Week Last Year?
Do you remember what happened in the market at this time last year?
Markets were dealing with the end of QE2 and we had been moving sideways and under Distribution for several months. Then suddenly and out of nowhere the market ran 80 SPX points in a few days in a “Magical Mystery Rally”. The circumstances were so bizarre and unexpected as to excite market participants into thinking that perhaps the economy had turned the corner.
But it was not meant to be. In fact the SPX rally began and peaked ALMOST EXACTLY where it is now.
The reason for last year’s Magical Mystery Rally was that Reality was perceived to finally be setting in and there were significant bets made on the short side. Does that sound even remotely familiar?
This year is a virtual Carbon Copy of last year technically. And fundamentally it is worse. But there are no worries because the Markets have been “RingFenced” by Central Bankers, just like the Banking system.
Comments »It’s Official
The risk of the system imploding remain quite real. Yet today, right now, your Training is being reinforced.
In my diatribe dated December 5, 2011 the assumption was that the trillions of dollars used by Central Banks to buy financial asset levitation was successful in tipping the scales to “market-confident” regardless of economic or fundamental scenario. But there was still the danger that markets could fail.
Then, earlier this month I deemed the Training complete. Market participants will not allow a reflection of reality anytime in the near future as the financial system will be manipulated at any and all costs in order to protect the status quo. Good money will be put in after bad, until it no longer is effective. How long and how much will that be? I have no idea and neither do you.
As we have surmized, after a swift 50% retracement of the recent gains, the markets would not fall in the face of the end of the half/quarter/month and in front of the July 4th Flag Waving Holiday. It just so happens that the Europeans talked some more about saving the system on this day.
So instead of good old fashioned stock picking, we will have a market just like in the past few years, with 2-3% daily moves in the major indices, within the trading range. I wouldn’t be surprised if the market closed up 400 today as recent shorts concede and the Markup gets into full gear.
Have a safe and happy weekend!
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and POOF…
So, the low volume two day bounce after tagging a 50% retracement of the June rally has been mostly given back in the snap of two fingers.
The upholding of ObamaCare is being blamed but futures were down 9 points at the open and it was because of Europe, again and still. There are only two ways for Europe to escape and they are: endless printing and bond buying or the United States of Europe. I’d say the former has more chance than the latter. They are clearly more interested in soccer and their upcoming August break than reform. Maybe if they just ignore it…
Certain segments of the market were moved by ObamaCare but it is purely political news over the near-term. The only way Obama loses is if the stock market crashes in October. That is not partisan, just realistic.
Summer has just begun and its gonna be a long one. Enjoy this beautiful day!
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