Wednesday, August 10, 2011
10 Aug 2011
Dow closed at new lows. VIX did not close at new highs. Mc Oscillator did not close at new lows, and obviously my short term hold short indicator also did not close at new highs. I still expect violent moves to both sides, and this won't resolve itself until it calms down some. If you cannot tolerate short term pain, now is not the time to be taking new positions to either side, and from a purely odds perspective, I'd avoid opening new shorts here.
Markets are irrational because humans are. They will do odd things.
Gold is getting quite high. I do think it will hit 2000 before it enters a serious correction. GDX looks to be consolidating.
"We can guarantee cash benefits as far out and at whatever size you like, but we cannot guarantee their purchasing power."
Alan Greenspan (Chairman of the Federal Reserve US Central Bank), appearing before the Senate Banking Committee on February 15, 2005, in response to Democratic Senator Jack Reed of Rhode Island on the topic of funding Social Security
at 10:17 PM