Boy this week flew by!
Certainly one of the most exciting weeks we’ve had in a long time and it’s very funny that we are making a very neat retracement which I predicted last night would lead us back to (hopefully) 12,777 on Monday as we retrace a very wide V-bottom where today’s likely close is around 12,500.
It would have been a great week to take a vacation and I’m sure going to be rolling up our protection into the weekend as we still have plenty of open calls, even after yesterday’s wild ride. I didn’t get a wrap-up out yesterday as I was working on the virtual portfolio reviews but Free site readers can see some of the intra-day action under Thursday’s post as we are still testing the copy system for the basic membership site.
The news after hours was as good as it gets with even Alan Greenspan coming out with positive comments on the economy. This is so surprising and the timing so perfect that this morning I’ve counted 6 different guests who’ve used the term "conspiracy" to explain the madness of the week! Richard Daughty wrote an amusing but true article in the Asian Times called "Bank Robbery Index Turns Bullish" where he says: "The irony is that the REAL crooks are the banks themselves! Hahaha! The Federal Reserve has been wildly, childishly, stupidly moronic in creating so damned much money and credit, year after year, expanding the money supply (monetary inflation), that they have stolen the buying power of your money."
“Our society is run by insane people for insane objectives. I think we’re being run by maniacs for maniacal ends and I think I’m liable to be put away as insane for expressing that. That’s what’s insane about it.” – John Lennon
While we celebrate the return of the markets we are really just witnessing a reinflation of the commodity of stock certificates (along with Gold and Oil) as they become more expensive against a falling dollar. The dollar was making a very strong comeback on Tuesday, as the rest of the world was panicking and the "flight to safety" in US dollars that I noted that morning drove the value of your money from 76.20 to 77.35 overnight and drove oil and gold sharply lower. Of course the Fed had to step in – the Fed is there to protect rich people and rich people have oil, gold and stocks – only poor people have money, and the Fed can print that any time they want to.
Now that Americans have been deprived of their property through the magic of refinaning, "reverse mortgages" and easy home loans in exchange for dollars that have declined 17% since the peak of the refi boom in ’06, and now that margin calls have shaken retail investors out of their stocks and greenlighted another Federal money drop that disguises a much bigger bank and business bail-out ($37bn worth of our bank assets have been sold to foriegners at the bottom so far) which does nothing for the 7,000 families a day that are still losing their homes – now that all those ducks are lined up, we can get back to business as usual in the markets while blaming the French for all our troubles.
Now that the average American investor has taken a severe hit in the markets the government will finally come up with a plan to save the banks, save the bond insurers and save everyone else who contributes to their campaigns while giving the average american $600 to shut up and take it. Gee, I heard Heidi Fleiss would get $1,000 for her girls, can’t the American people get paid the same when they get screwed?
OK, that’s enough of me complaining – it’s been a fantastic week for us and I just need to vent my conscience once in a while so I don’t feel so bad about taking full advantage of the situation, it’s my own version of "If you can’t beat ’em, join em" only no one said I have to pretend I like it!
You can’t beat Asia the last two days as the Hang Seng racked up another 1,583 points on the day and the Nikkei went up and up and up some more, finishing up 536 points (4%), just 96 points below the 25% (from the top) line. Europe is also chugging along with great gains as the DAX flies over our critical marks and is at 6,956 this morning.
Our pre-markets are up 100 points and today is like waking up from a bad dream as apparantly nothing that was destroying the markets on Monday and Tuesday even exists anymore. As I said, while we are thrilled to make the money, we are certainly going to take it with a large grain of salt until we re-establish some good footholds so I will be remaining cautious into the weekend with decent coverage – just in case…
