The government refused to listen to Bill Siedman (while he was still alive) who cleared up the 1990’s SAVINGS & LOAN, REAL ESTATE CRISIS in less than 3 years at a cost of less than 25% ($500 billion) of what the initially projected loss was to be.
HOW DO WE TRADE IN TODAY’S MANIPULATED MARKETS?
I have finally come to the realization that the current market conditions are almost impossible to trade using past successful technical analysis. Today, the emphasis must
be on government policy and their proclamations, knowing full well that everything they say is a lie or wrong. I feel as though we have been tip-toeing through a mine field for
the past 24+ months waiting for extremely negative news or extremely positive news to trigger a wave of buying or selling that has yet to happen. If you are going to trade,
remember to use protective stops and don't get over committed to headline driven markets - they don’t last. You must decide if the expected government actions will take
place and more importantly, judge whether or not the expected actions would be positive or not. Unfortunately, their actions end up not being positive because they are
usually stopgap measures.
Stocks are at risk from HOW FAR Germany can be pushed and more importantly; what good or harm will they do and how long can the
bailouts last for?
The recent strong move to the upside caught a lot of traders on the wrong side of the market. Yet the strong rally could not last out the day. That seems to be the markets
mantra of the last few months. Regardless of whether financial pundits refer to it as a short-squeeze or simply panic level buying is largely irrelevant. Time and price are
always the final arbiters of financial markets. The big move last Friday was seemingly telling us that too many market participants were shorting equities and the Euro (FXE).
There are no such things as Sure Things. The same is true for China. They are a Fascist and not a Capitalist country and they must succumb to the same problems that
all Centrally Planned countries must face. Just as I have been warning you they would for over 2 years now.
The news coming out of the European Summit is what drove prices higher according to most media outlets. However, few traders have actually taken the time to research the
fact that Germany has not yet agreed to the European Stability Mechanism legislation. Not that it would solve anything anyway. The German people, if not their politicians,
realize full well that Germany is not big enough or rich enough to bail out most of Europe, especially since a bail out would only be the first step. Next year, they would
have to do it all over again because nothing would have been solved.
UNCOMMON COMMON SENSE: Europe and America must be allowed to fail and start over again. There is no hope in either Heaven or Hell to solve a massive Debt Problem
by doubling or tripling down on the debt. The US still has a chance to save itself, but to do so means reverting back to Capitalism immediately. All they talk about is how to
raise more revenue (taxes). Cutting entitlements by any meaningful degree is not even on the table, certainly not before an election. Next year will be too late.