1039 double bottom perhaps. stochastic overbought, Vix took a hit.....but IMHO it all means little to bigger picture, nothing more than reallocation from bonds (sold off) into equities....not much volume this time of year....just bigger guys duking it out....means little to me.
Market up....INTC lowers estimates, consumer confidence falls, GDP comes in a weak 1.6%.
But isn't it super that it didnt drop to 1.4% GDP? what passes for good news these days..... and remember folks what happened to 2.5% first estimate? why even bother...
We should have confidence in the FED, they will do what is needed....if its needed....even if what already done has not translated into a sustainable economy.....we should have faith and BUY STOCKS?
It wouldn't surprise me if Monday into next week turned this thing right back around.....a rally on nothing, less than nothing unless you are couting all the data that points to not only a slowing but an outright punkish environment.....I ask you, if they had real answers.....wouldn;t they already be doing SOMETHING?
Well....why do something now...after saying we were alright...and look panicked....is this a screwed up situation or what?
Lots of reading to do....try to post this weekend, do come back.
Duratek
2 comments:
1039 is not going to hold and neither will 1010. Enjoy the rallies as it give u a chance to get short again and again. Both the Fed and the congress know what to do but they wont do it. You call me cynical but look at how the monetary system works.
QE from Fed ~1.2 trillion dollars goes to the banks and banks give the Fed their toxic mortgages. Now for this money to reach the public how does it work? The public has to borrow 12 trillion dollars for that money to reach the "real" economy. Money is born as debt. For money to reach your hand you have to go into more debt. How is that going to happen at the top of a debt supercycle. The last straw was the baks lending money to people with no jobs "ninja" loans. Peak credit is over. Banks cannot lend because asset prices are collapsing around them. They are barely in the black with Fed and taxpayer support. Remember banks buy bonds with the money they got from the fed instead of lending. The bonds pay interest. The taxpayer pays the banks the interest. So in addition to not being able to lend the banks are also sucking the economy dry. This is not free market capitalism.
Unlike the Fed congress can put money into the hands of the people. 1.6 trillion last year and >1 trillion this year already in federal spending is papering over the depression. >40 million Americans are on food stamps. people say but we are not in a depression. We dont have 25% unemployment. The unemployment rate was not 25% in 1929 either.
Save your money. Cut your spending. Cash will be king.
Cash is exactly where I have been my friend, my only mistake was not allocating some to bonds awhile back.
If you have a situation of the clueless anf the clue impaired running things, there is little hope they will listen to reason or get it....the main goal of those in power is to stay in power...truth telling does not enhance that
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