Archive - Mar 10, 2011 - Blog entry

Nonunion Georgia’s public pensions are, in fact, three times as generous as those of labor-friendly Vermont, where more than half the public work force has collective bargaining...

I see trees of green, red roses too...and I think to myself what a wonderful world--Louis Armstrong

First and foremost, the bearish rising wedge pattern in the S&P 500 has broken to the downside. These patterns have a nasty habit of dropping to their base, so we could see stocks at 1100 in a hurry. Indeed, not only have we broken the lower trendline that supported stocks since September, but we’ve also taken out major support at 1,300:

Hmmm...

What is coming will hit every person. Rich, poor, young, old, healthy or sick.

How can the SEC's Office of Risk, Strategy, and Financial Innovation "provide the Commission with sophisticated analysis..." when there's no one running the Office of Data & Data Analysis?

If one would have looked at the actual numbers versus what is consistently reported in the media, one could very well have grounded oneself profitably and firmly in the fastest growing and largest mobile market in the world. Then again, if Grandma had balls, she'd be Grandpa. Wouldn't she???

So, let's see which of the things we've been ignoring suddenly matter today...

Right now, it's ALL about the dollar and how it performs at it's current inflection point. We are expecting that the situation in Europe will not stabilize and that the Mid-East will, which should drive money out of commodities, out of the Euro and into the dollar...

"Create is to resist...Resist is to create." George Hessel, Indignez Vous (2011)

Some 97% of the financing for the housing market is about to disappear. If Fannie Mae and Freddie Mac aren’t recapitalized soon, the home loan market will be privatized. One bubble too far. A free, unsubsidized market for home loans will be a much more expensive market. The grim outlook for home prices. That is when we find out how much freedom really costs.

You know, timing is everything. If you hit brakes after you pass the red light... Bang! If you pucker up after you press your face against that of your sweetheart's.... You bonk her/him on the forehead. If you downgrade a nation after obvious signs of insolvency...
As the markets slowly wake up to the risks I've been outlining over the last two years, reality will reassert itself in a most assertive fashion. The (re)adherence to fundamentals will feel like the reinvention of gravity.

We're sitting pretty neutral across most pairs at the moment, the pair most likely to see a shift in retail positioning today is GBPUSD with Manufacturing Production released at 4:30 EST and the BOE interest rate decision coming out at 7am EST.

Why you shouldn't trade when you are really tired ...