A slight bounce in the short term. Remember, in order to buy, we like to see this make a positively divergent low.
I am not voting this year. However, I did hear that Romney is saying that we don't want the US to become Greece. What a foolish statement. The US issues debt that it can repay in its own sovereign currency. Greece does not have the luxury of printing its own money to repay creditors. Yes, in a way, the US is already Greece..inflating away debts is a form of default. Maybe even more evil than outright default. An outright default causes pain to the banks that lent the government money via fractional reserve banking. The ongoing camouflaged inflationary default robs citizens, the poor and elderly the most heavily, who don't know any better. At least Greece is honest about their intentions Mitt. What good is the right to vote with no one to choose?
"Is there any reason why the American people should be taxed to guarantee the debts of banks, any more than they should be taxed to guarantee the debts of other institutions, including the merchants, the industries, and the mills of the country?" Senator Carter Glass during Senate debate on the Banking Act of 1933 (Glass-Steagall Act) [source: Rixey Smith and Norman Beasley, Carter Glass: A Biography (1939)]
At 40% this is not oversold, however, it typically slightly lags market moves.
Slight decline today. VIX is up against key resistance.
"The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was every invented. Banking was conceived in inequity and born in sin . Bankers own the earth. Take it away from them but leave them the power to create money, and with a flick of a pen, they will create enough money to buy it back again . Take this great power away from them and all great fortunes like mine will disappear, for then this would be a better and happier world to live in . But if you want to continue to be the slaves of bankers and pay the cost of your own slavery, then let bankers continue to create money and control credit." Sir Josiah Stamp, president of the Bank of England and the second richest man in Britain in the 1920's, speaking at the University of Texas in 1927
I will update this with charts throughout the weekend.
I had a comment yesterday asking for some help, and an email from a friend asking for me to add a chart to my Current Long Term Outlook page. I'd like it if anyone else has various requests or suggestions on how to make things better to let me know.
It should be no surprise that the shortest term is now pretty much oversold. However, the medium and long term indicators have some room to fall.
What if the differences between social strata stem not from genomics or inherent xcellence or even dollars, but merely differences in knowledge? Would this not mean the whole Pyramid is built on shifting sand.
In the shorter time frames, we are in a neutral position. In the longer time frames, we are showing a little weakness in that the current peak is lower than the past peaks. This weakness will not present itself until it does - usually in the form of a worse sell-off once (if, haha) it finally occurs.
VIX appears to remain subdued by the red and blue trendline I drew. The 50 day moving average is also right there. Once this pattern resolves, we should have a decent sell signal (if) when it comes.
"When nothing seems to help, I go look at a stonecutter hammering away at his rock perhaps a hundred times without as much as a crack showing in it. Yet at the hundred and first blow it will split in two, and I know it was not that blow that did it, but all that had gone before."