thetechnicaltake's blog

Why ever sell? Such is our markets where investors have been conditioned that they will not experience the pain of deep (any?) losses for any length of time.

After all in this singular issue world of ours, the only thing holding the market back is the fiscal cliff and Washington's inability to deal with it.

By blaming this week's sell off on the coming fiscal cliff is another belief by market participants that Washington can fix our economy and our markets.

By my calculations, the SP500 will bottom near the 1260 level, which is nearly 150 SP500 points from today's prices.

No wonder mom and pop investor are soured on Wall Street. Just when "they" tell you it's a can't miss market, well the market stumbles.

The markets are all about timing. In this case, 55 weeks.

It's like we are in a vacuum, and the silence is palpable as the bulls hope that the announcement of QE3 hasn't become a bull trap.

The repudiation by the markets of Federal Reserve policy is almost complete.

The best gains are behind us especially in the wake of the Fed's vacuum and the lack of any meaningful and sustainable upside catalysts.

Wait a minute, investors can't expect more QE because we already have too much of it already.

Gold has been consolidating the nearly 100% gains that took place over the prior 2.5 year period from 2009 to mid-2011.

This is a rally based upon hope and vapors.

Just remember what the market was telling investors at the October, 2007 market top when it hit an all time high (SP500 1576.09) and just prior to cratering over 50% in 2008.

In fact, the only thing that can circumvent the price cycle is QE3.

Three short articles on investor sentiment, and why this rally was doomed from the start.