Well as expected they backed off the algos today and left the ponzi in neutral. Tomorrow should see better action. More than likely another green paint job, although I am net short. Just my pessimistic side. DTO was nice trade today. Remember my concern is that as they devalue the dollar further oil becomes a major liability for the Ponzi. You see ....you can lie on CNBC all day about how good unemployment is and how it affects productivity and that corporate profits will soar.....but guess what....when you put a barrel of 85 dollar oil up the consumers ass all hell begins to break loose....and I don't mean Barney Frank squeals of joy.
So my advice the boyz at GS and Ben is you are skating on thin ice here. Keep it up and g-d is going to have to visit and it won't be pretty as a friend of mine likes to say. The game "should" be to move this market downward for a couple of weeks before the end of the year paint job....but if recent history holds they may continue to ramp it. That is insane but what hasn't been so far. Just remember there are consequences guys.....and the law of nature always wins.
Play miners for gap trades otherwise this casino is CLOSED. Whacked out on Meth and burnt to the crisp. Just wait for the smoke to clear if your resources are limited. This pig is so overbought here that I can smell it from my computer. Watch dollar in am for tell. Don't forget GL gang
Oh BTW great video here just GREAT......
http://pragcap.com/marc-faber
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3 comments:
The other side of the coin as far as corporate profits due to increased efficiencies is who the hell is going to buy the products? Also they are building inventory but not to any extreme levels so once the limit is reached and the pull dont match the push what happens to the profits?
Unemployed people only buy necessities and those that are working are paying down debt.
It will be a lean Christmas all across the board.
We will probably see a dip in unemployment due to Walmart and UPS and a few others adding seasonal help but come January/February it will shoot back up.
I'm net short too, but.. If your gold hedges are serious enough you can survive even net short.. A 33% miner position can pull the weight of your entire portfolio until reality reasserts itself, and let me tell you reality is in the best shape of it's life!
Barney GS Song!
I love you,
You love me,
We're a happy family,
With a great big hug,
and a kiss from me to you,
Won't you say you love me too!
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