Friday, July 22, 2011

YOU CAN'T QUIT NOW


Too late Ben. You went down this road as predicted three years ago and now you are in the NO TURN LANE with the Semi bearing down on you. Maybe this works for awhile but the ultimate collision of the immoveable object approaches with every passing day. Can you change the equation of E=MC2? Can you make 2+2=5? These are forces that are law. These are laws of nature. Your wife runs up 200K on ten credit cards on you family income of 50K/yr. You have a problem. Presto....problem solved you find another credit card for 20K and you are good to go. You're still driving the 5 Series BMW and still living in the 400K full mortgaged house now worth 250K (provided you can even get an offer). You've kicked the can for another few months and all is good. Unfortunately you will only be in debt an additional 20K in a few months and you will be trying to find another credit card. Its fairly simple. You keep buying those scratch cards everyday for two months hoping to hit that jackpot. Unfortunately this is analagous to what is happening with our current world financial system. Burdened by debt that can never be paid back without a catastrophic default of most of the developed world, plunging us into the abyss of deflation and ruinous GDP collapse. It's simple math its the law of nature and it will be obeyed. It will not be denied, but it will be fought, and it will be stretched to the maximum by the Bernank. HE is the operative for the true power that is navigating this treacherous predicament.

This has been decades in development. Can we escape without some catastrophic conflagration that reduces continents to rubble? Of course we can. Unfortunately the risk of such a Supercycle event does rise astronomically with extreme imbalances. That is one of the tight ropes that the Bernank is trying to walk. The corporate/banker elite are trying to maintain power and control over entire continents while the land the deflationary 747 on an aircraft carrier without a complete crash. Every trick in the book is being implemented including trying to cheat at math. That is why transparency is being tossed out the window. The irony of it all is that trust is essential to healing this crisis. I have mentioned the restoration of CONfidence to make the system work again. CONfidence in our leaders and institutions to do the "right thing" for the good and benefit of the MOST people. Unfortunately the first casualty of the course they embarked on was the TRUTH. Once the informed segment of the masses saw this the grift was in jeopardy as word was spread through different mediums that never existed during the last Great Depression.

Its been an interesting journey to date and my guess is we are still in the very early stages of the ultimate end game. We probably haven't even seen the phoenix that will hopefully rise out of the ashes. Its the ashes part that I worry about but time will tell whether they are figurative ashes or not.

Greek default will be disastrous for the bankers make no mistake and it will be fought to the end. The $XEU touched 144 we could start seeing some interesting Euro moves over the next few weeks. Wait till they realize the implications of a structured default in SPAIN or ITALY ....oooooboy. RISK TRADE ON!......hehehee yeh right. QE on that is for sure.......but when....that is the question. I still like the miners this year. Near term oil may touch 102.5 for a DTO trade. And I still think we are going to get a chance to play another pump of equities. Let's see what Ben can do. gl

Rogers on the dollar here...


http://www.fxstreet.com/news/forex-news/article.aspx?storyid=9c991fe0-da07-4b5c-85e7-357d3a84e845

32 comments:

  1. Morning Kli,

    Doesn't look good for a pull back in Silver today......... Was hoping for a drift down to 37 or so before loading back up

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  2. hehehe....yeh tom......also look at RIC pivot point nailed now it neesto take out 8.44 then straight up to 8.62

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  3. Boehner is coming out with a market mover in a half hour or so......WATCH OUT BELOW

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  4. took a flyer here on HERO......

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  5. so far so good on the $XEU turn off of 1.44......bearish wedge should play out...game off it it reclaims 1.44

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  6. sorry EUO is the play for short on $XEU

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  7. Your methaphors today outstanding...did y'all see the terrorist attack in Oslo? Could be the cause of the gold/silver run in spite of the dollar spike this am.

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  8. Wishful thinking today...... hehehe, but I'm gonna wait a bit, no need to jump in right now!

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  9. HUGE explosion now in Oslo......pictures are very scary.........gov building and financial area many buildings appear damaged

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  10. Interesting comments on ZH on Oslo explosion!

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  11. Lakecabs,

    You sure were right on the GENE short. To bad I didn't play it.

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  12. Hey Sis - you still hold pzg? Any plans?

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  13. Gold was already breaking out before Oslo......but these type of events are putting fear and uncertainty into the markets

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  14. Homer if you feel uncomfortable with PZG dump it. GPL is a switch

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  15. RIC breaking out now.........yummmmmmm

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  16. Not uncomfortable at all, I got some in the 3.40s and some in the 2.60s, Joe counseled me about not getting enough when it was in the 2.50s and dumping some of it when it briefly came back.

    Just curious about Nancy's plans (if any) as I believe she had some as well. I feel okay about holding it longer term.

    GPL...hmmmm. I'm also thinking about getting more SSRI and SLW, positive on those though I was briefly negative a little while back. Held them even when I had a 30% gains a while back to maintain something of a core (I traded too much a year ago). But I didn't pick up any more even when I went negative more because I was distracted by other things and hoping they would continue to fall. Back a whole month or so ago when "the silver trade is over"!!! lol

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  17. Chinese plays are in and out...you could have bought sino at 6.30 sold at 8 and now back at 6.67..wild...

    lakecabs was all over that GENE short...and the pversold bounce play would have been nice profit going back the other way..

    I know its redundant but keep in eye on CLSN..
    RXII 50/100 cross will be today or Monday..

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  18. took a nibble on GPL at $3.89. LDK had a nice run today. its been money in the bank for a swing trader with the $6.20 to $7.50 range.
    wish i would have added to it when it got over $6.60. dumped my STP for small gain, didnt want double solar exposure, thought it might have had a bigger pop, should have taken the SOL pick that was mentioned on this board.

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  19. Clearly, the sun must have shown brightly down upon LDK to have produced such an electrifying rise. Hoping it continues.

    Bought some EUO calls yesterday. Going for the Hat-trick.

    Have a Great Weekend everyone

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  20. LDK has an double bottom inverted Pig formation forming...I just made that pork up....the 2 bottoms look like pig ears...if it gets above 50 could run hard...but it seems the real game with chinese stocks is waiting for the 50/100 cross...MM's hedgies play the bounces until it happens...

    Immred would be better tell on this...

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  21. LDK might hit the top of the daily channel before turning or it might just retest low 6s again.

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  22. Breaking News Boner announces he's Pulling out from negotiations with the Prez.....hehehehehe watta mess.....hope you own gold

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  23. BTW gang this is all posturing.......notice the Reps waited until AH to pull this stunt......hehhehehe......let's see what monday really brings.

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  24. we all know how it will end. the dems and the repubs will walk out hand and hand like heroes, acting like they saved the world from disaster when they finally reach a deal in the last minute. it always plays out the same way. it wouldnt surprise me a bit if they already have a deal stamped out and are just waiting till the last second for the dramatic effect to bring it out.

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  25. need fresh shorts to fry...so I would say next Thurs PM or Mon....This phucks are so messed up Patton couldn't help them get in shape....

    I'm creating the MOM party, definitely enough votes, I'd rather have 518 moms in congress...they know how to budget, organize, multi-task, hand out punishment equally and make do with what they have...

    The MOM party....republicans and democrats, same shit, 2 different piles....Peak stupidity in congress is what we should have been looking out for...

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  26. Peak Stupidity hahahahaha! We the sheeple voted these bird brains in the first place! Just think I used to be a card carrying Republican...... Now that's Peak Stupidity! I hope they tank the whole show just like they did with the tarp vote......... Gotta have the big fear show and as you mentioned fry up some shorts, got plenty o cash....... We shall see.

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  27. Borders closing all its stores. kind of a sad situation. it was one of the few stores i really liked going too. i am sure the commercial realestate mkt will rally. SPG will rally on this news and SRS will tank.

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  28. yes......this is hopefully going to carry through next week.....if it does (which I have my doubts it will (watch for a sunday nite announcement) BUT if they open the market with fear Then you have to have a shopping list ready......Be prepared

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  29. Hey I was a card-carrying Bush-hater not so long ago, I must have had to cross my eyes to focus on such a superficial level of the BS that was going on around me.

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  30. The current state of affairs was brought about by both sides (as if there are even "sides". It is almost impossible to ignore the lobbyists, special interests and your party's wishes if you wish to be re-elected.

    My father used to call them all "failed lawyers", couldn't even make a living doing that. ;-)

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