16 May 2012

I decided to close most of the short sales that I initiated throughout February and March today.

No, I don't think anything has changed for the US or European economies.  I don't think that all of a sudden European countries can have real growth by politicians waving the magic growth wand of rhetoric.

There is too much debt.  There are too few new suckers to pay off the existing debt with interest (money (debt) that doesn't exist yet)  in order to pay all the banks back, and still pay for the transfer payment programs required to keep the older segments of the population placated.  There has been too much brain drain out of Europe.  The demographics are not favorable.  The place is run by bumbling fools like Hollande.  And most importantly, justice has not been served.

 However, I saw this was getting pretty low.  Actually the fact that it is lower than the previous low is quite bearish.

 This is still above its previous low and is oversold considering the overall lack of panic we have seen.

And the SPY has been tracing out a nice descending wedge, and currently sits on the bottom edge of it.  A 50% retracement would be quite painful to any new shorts.

Plus, that garbage Facebook IPO is Friday.  Wouldn't want to have a bad showing for that.  If you buy it and make money, congratulations.  I don't care about the hype, and wouldn't invest monopoly money or fiat money in it.