Thursday, March 17, 2011

CHANGE OF CHARACTER


Every YING has its YANG, nothing goes up or down in straight line....but goes down faster.
"Emporer has no clothes" the FED POLICY of ZIRP at any cost has been debunked. HUGE inflation at PPI level is going to filter through everything we buy. Only a liar and a fool say we have no inflation....and yet we have DEFLATION TOO...in HOUSING....it''s where the majority of Americans store their wealth.....and it has not responded at all to all the stimulus and games.
Were it not a forced change from mark to market accounting, this turd would smell like one instead of a few day old rose....SPX earnings are a sham.
Sure the indexes canpull out of the nose dive, but why guess? the MA'S I use are beginning to bend down and merge....on a ST basis I use 20 and 50 periods on the daily......then 50 and 200. This can also be used on weekly....and you can see the action without commentary or opinion.
When the proper MA'S are rising or falling together after a cross up or down....THAT'S YOUR TREND...fighting it is stupid.....you want to pick a top or bottom go ahead.
YEN delevraging carry trade and oddly rising yen value put some giddy up in stocks and they work off oversold.....that is basically stocks 101....we go from one extreme to the other and back and forth.
If down trend continues to gain steam vs uptrend, once or before oversold gets worked off prices fall to next level seeking a price most will pay.....deem attractive.
I think after recent events in Middle East and Japan.....complacent behavior is suicidal
Duratek

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