Tuesday, May 15, 2012

15 May 2012

Not extremely oversold, but did break below previous low.  

 Nearing previous low for the medium term.
 The medium term summation index continues to be weak.

I don't like talking about political stuff much in here because I think the strength is my charts, and those are a lot easier to update.

However, with the JPM stuff:  The government is saying this is why we need tighter regulations.  So, wait a second, we (investors, businesses, banks) are not allowed to lose money and regulations are going to stop that?  I get it, JPM took a bailout so they shouldn't have been gambling.  However, they shouldn't have been bailed out in the first place.

I've got a few ideas:
1) enforce existing laws and regulations before creating more.
2) let the market perform regulation - bad banks fail, other banks will likely not take same steps immediately
3) break up too big to fail - if something is so big that it is possible to have a gargantuan loss that can broadly affect markets, cause the federal government to throw a hissy fit, and affect the economy, it is probably too big.

For those who haven't seen how we got to "Too Big too Fail"

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