"Game Over" Stephen Roach and my market wrap

http://www.morganstanley.com/GEFdata/digests/20050107-fri.html#anchor0

Everyone's favorite pessimist. But should not be ignored.

I appreciate everyone's feedback, feel free to email me and I will do my best to respond promptly.

Last 15 minutes rise fron FLAT today seemed disingenuous, orchestrated. But with 20 EMA (exponential moving average) now falling for most if not all major indexes, we will see if any rise is just working off general oversold levels, with McClellan OSC in deep negative territory.

Richard Russell's NEw Highs VS New low's study has shown a constant deterioration in the health and breadth of the market. It has not YET given a SELL SIGNAL meaning overall lows are now greater than highs in his study, but it is close. We will wait and see what happens.

SInce the Aug/OCT lows I observe the market has been holding above the RISING 20 EMA as I said, that is not the case now. I am not sure how significant this wil be, but it is another piece to consider of the whole technical picture.

BUllishnes continues to roar ahead at historic levels. Gov is cutting military spending, the costs continue to mount in Iraq, the deficits continue to set records as in this AM's $60 Billion number.

The cost of most everything is going up. WHat did your property tax asessment look like when you got it recently? Mine SOARED 30% !! It hadn't gone up a total of 30% the 15 years I have lived there.

Fed is in raising mode, and I feel the back drop to being long this market has deteriorated to the point it nolonger makes sense for me to play it.

A GOOD trader can play the ups and downs, but not the avg speculator.

Insiders selling at record clip!

AMD spanked last night 26%.

The Chinese are taking our dollars and building their military!

Greenspan should have been retired....not knighted. The imbalances continue to pile up, the room for error no longer exists, as consumers are up to their eyeballs in debt.

But, we will survive, we will move on, but it would benice to do so in the best financial shape you can.

Instead of trying to play the game in an over priced market, what is wrong with trying to HOLD ONTO what you got?

DURATEK