Bond rally coming... 3.60 on 10yr T
Gold going to tank... still saying 1060 and lower on way to $960. People who take refuge in an unproductive asset during deflationary times are wearing hydrogen filled balloons while smoking a cigar in a pine grove.
Euro going to retest lows... 1.28-1.30, will break 1.32 support soon
Why?
I could tell you but then you would go tell everybody and I would get these pesky reporters asking for my credentials...
A premise: massive deficits and FED fund rates nil... economy NOT growing nearly enough to justify MARKET VALUATION
A Little Secret... if you notice all these "stellar" PROFITS" ( remember PROFIT is a ACCOUNTING OPINION) on the NYSE and NAZ ... are LACKING OBVIOUS SUPPORTING indicator... NO TOP LINE GROWTH ANYWHERE...
I Don't know if you ever bet on fights... but generally you try to avoid betting on the guy with a hand tied behind his back...
Would also explain why insiders are SELLING 53:1 ... not a very comforting thought...
So if for the insouciants a 70% rally is not pause for reflection showing NO GROWTH!!!!!!!!!!!!!! then stay in this loonie bin, otherwise do like me, BAG profits... and check out safer ports until TOP LINE revenue comes back ... Without top line, no NEW jobs, with no jobs, state deficits have no way of cut down until administrators commit the sin of firing their own people... aka Harakiri... well that;s just before we release dandy numbers on people behind on their mortgages...
In the meantime don't mistake all the noise about Goldman and other investigated banks, it's all a PLOY to give you a REASON for a market fall but the real reason is the equity market is WAY TOO EXPENSIVE for an economy smaller than in 2000. PLUS when Goldman is busy fighting charges it will be lesser inclined to SHORT Obama, Geithner or Bernanke... Can a scorpion really be anything else? When it comes to GS, it will always be business, HUM...I mean, ruthless as usual!
BTW the S&P stands at 1208.06 when I said to dump... Let's see what the next 30 days show...
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