IMPORTANT MKT WRAP "IT CAN'T HAPPEN HERE"

We have the best market money can buy! Liquidity flowing like wine and it's going into assets. I don't see it doing what it was intended,repairing the economy, Paulson and friends settled for helping their friends oN Wall Street, screwing the avg American not an INSIDER, and wasting precious US resources to help the connected few. GOV SACHS and friends.

Must read link below.




Conclusion http://voxeu.org/index.php?q=node/3421
"To summarise: the world is currently undergoing an economic shock every bit as big as the Great Depression shock of 1929-30. Looking just at the US leads one to overlook how alarming the current situation is even in comparison with 1929-30.

The good news, of course, is that the policy response is very different. The question now is whether that policy response will work. For the answer, stay tuned for our next column. "

Trading ranges of the major indexes including the transports are at the top end of a 3 month trading range. Overbought readings are coming in, so a pause would not be surprising here.

I have not seen the selling needed to break down the markets, should buyers finally step it up here an upward EXPLOSION could result.

Some of my indicators (especially after 2nd push to VIX 80) were signalling seller capitulation. The market is tracking VERY similar to 2002 lows action, rise, and now all is left to see if we plunge to test THE lows n place from MArch....as we did test in early 2003. A BOTTOM was confirmed then and it was safe to go long until OCT 2007 top.

My main personal goal had become one of staying LIQUID, and avoiding all risk, so even as I prepared for the MArch lows, I did not follow through. Not always easy to do in REAL TIME, but I thought DOW 6,000 zone would be a good 25% in zone for my cash with the HAIRCUT we had from highs.

If you stay in mkt during bear you wont have the CASH to buy ANY LOW.

Also my blog hadn't been intended to make real time BOTTOM CALL....I'll continue to present the evidence and rate the risk.

Historic monies have been THROWN at this crisis...what you see now is the result.

WHEN the upper (we're clOSE) trading range is taken out, we can try and predict next level. 975 may be some R, then 1000 oN SPX

There is a chart out there Ive seen but cant find one to post called "DIVIDEND SUSTAINABILITY RATIO",,,,,,it has risen SO HIGH the comments were EARNINGS would need to TRIPLE from here to bring it down to normal.

Companies are in general not expanding sales but cutting costs, what they HAD to do. WILL CREDIT and the COnsumer come roaring back?

Duratek