Well if we break back down below 1490 (right there now) it really doesn't look very good for the bulls... I consider this a very important test here. If all this 'assistance' cannot get the market moving in the 'right' direction, what will? Next few hours/days important, this level really needs to hold for Santa Clause to re-appear. If not, all we saw today was short covering and not real buyers. As mentioned yesterday - the pattern of lower highs remains intact, hence until we get back to S&P 1525 or so, you cannot get too bullish.
I am going to need to patent "S&P 1490" as I keep returning to this theme so much
2 comments:
All this ... for this!
The market wants to have ITS way. Trying to sustain something that wants to go down seems to be useless.
May be they should start thinking the other way around: how to sink the market. The faster it sinks, the quicker we can start all over again on sane ground!
there are many unintended consequences for all these moves; that is the next worry. By 'solving' one thing, you create the next problem. Until the banks come clean there will be not trust. The problem is the toxic instruments on banks balance sheets (or OFF BALANCE sheet) are 'unknowable' in terms of value in the next few years. even the banks are now saying it. So even the ones who WANT to be truthful, cannot. As they have no idea what those assets will be worth as home prices continue to degrade.
Again this is why I made the call last week that we will have bigger, better, (sarcastic) bailouts coming. What form they come in... well it all scares me. Because they will 'fix' one thing, and cause another blowup somewhere else. You can't push 1 lever without having another lever, it is sort of like hitting those squirrels heads (chipmunks?) in that game you play as a kid, you hit one of them on the head, and it pops up somewhere else... thats how this credit issue is. It is going to take time... lots of time... and people want solutions now. Well here is the answer - there are NO solutions - the air must be let out and someone has to feel pain. We can't go through a correction without anyone being hurt. This has yet to seep into the concisciousness because we are so spoiled by the 'rescue police' of the Fed - any boo boos, and mommy comes. Again the market is down 4% from all time highs with the cadre of major systematic issues? It makes no sense.
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