25 March 2013

SP 500 Futures Intraday - Buy the Rumour Sell the News Pop n' Flop?

The bulls are having quite a bit of trouble with the pivotal area of 1550-1555.
Today makes the sixth try. Perhaps they can take it by the end of the day.

As you know our intermediate target has been 1565 to 1570 since mid-January.
Let's see if they can take that price level and hold it for more than a day.

If not they may have to back up to big support at 1525 to 1530.

IF a 'significant' event triggers a selloff then we are looking into the 1400's at least with a 'must hold' at 1450.  Look at the turmoil that a relatively symbolic event like Cyprus was able to stir.

This is what I would call a 'fluffy' market.

I would not bet on that just yet. The Fed continues to ply their cronies at the Banks and Funds with $80+ Billion of easy money per month.

It is a bubble, but bubbles are notorious bear-busters since they have an internal logic of their own.

I think gold is fundamentally undervalued relative to the financial and currency risks, but values are not very relevant to the kleptocracy at this time of papier-mâché economies, except as a rival to their control frauds and a reflection of their general perfidy.

In that sense Cyprus was a watershed event, despite its seeming insignificance, as the MF Global style confiscations of the oligarchs become official government policy.