My wife tells me you are interested in my take on current events.
Last Thursday the Dow Industrials, the S&P500, and the NASDAQ Composite dropped below their 200 day exponential moving averages (Dow close 10068, 200 EMA 10264; S&P500 closed 1071.6. EMA200 1102.6, NASDAQ closed 2204 EMA200 2223) The Dow and SP500 closed out the week below their EMA200 and the NAS slightly above.
The VIX has been going nuts the last three weeks. Big Boys are hedging downside risk, have been for three weeks. The algorithmic traders should have bolted by now and the markets crashed. Looks like the feds are involved. Note the last thirty minutes of Friday.....
Very bearish for stocks in general. This is a very reliable (as such things go) sell sign. Everybody is waiting for tomorrow, wondering if stocks are going over the cliff. Those that sold last time this happened (me for instance - late 2007) were glad they did.
The Fed printing money and Treasury borrowing recklessly, deficit spending this year larger than both Bush terms, a refusal to deal with Fanny, Freddie, and FHA - who caused this mess, money sent out to shore up friendly politicians and other political supporters instead of Main Street, huge unemployment and getting worse, not better, one tenth of banks not "too big to fail" on the FDIC watch list - makes me wonder if they are really so stupid or are actually malevolent.
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