Thursday, May 6, 2010
The top has been establised and a test of the 50 day MA is the result for the DOW so far. After yesterdays ISEE at 65 which is an extreme ( 52 week low - or putting it into a picture extreme put buying ) after a prior 95 day brings probability to 75% that today is a positive close day. The mantra remains sell into any strength for the time being as this correction has started from a pivotal point which was a combination of 61.8% retracement, the trendline and the 200 week MA with extremely overbought conditions and very bullish sentiment. The sovereign debt crisis is just at the beginning as long as people think that a country with 21 % unemployment and an insane debt level as Spain can borrow money for 5 years around 3.30% you know that something is deeply wrong. The same applies for America only that the spotlight is on the EU right now does not change the fact. Morons like Doll from Black Rock claiming that zero interest - which is a perversion of any common sense of the duty a central bank can deploy since it punishes the good behavior of saving in bad times and benefits bad behavior of stupid bank leverage - declares that this a good reason to buy stocks. When the big crash comes is only a matter of time as the con artists from the FED and Wallstreet with their corrupt DC puppets can not keep the charade up for much longer. The schizophrenic approach to ask EU members to practice austerity while America keeps deficit spending on national and individual basis does not really make sense.
Posted by getagrip at 5:28 AM