skip to main |
skip to sidebar
"Terror... often arises from a pervasive sense of disestablishment: that things are in the unmaking."
Stephen King
Big up day for the metals.
I do not care for their synchronicity with stocks. So many assets are now correlated to a global reflationary event, and the markets are overly sensitive to headlines. That makes these markets highly dangerous.
What is happening with MF Global and the US futures markets is a disgrace. But hypocrisy and betrayal are the temper of the times.
"By the pricking of my thumbs,
Something wicked this way comes."
William Shakespeare, Macbeth
"The wolf thought to himself: 'What a tender young creature! what a nice plump mouthful.-- she will be better to eat than the old woman. I must act craftily, so as to catch both."
The Brothers Grimm, Little Red Cap
The Wall Street wiseguys are shoving the Groupon IPO out the door tonight I hear.
It *could* do well, but it strikes a kind of a chord for a high water mark in the post 2008 equity echo bubble. But I have found it useful not to underestimate the reckless disregard of the US financial system and the Fed for the overall economy. So we may see this bubble higher to a crescendo. The real prize is Facebook.
I consider this a dangerous market, highly event driven and thin of substance. Kind of like Obama and the rest of the Republican hopefuls.
I have heard from a number of people, including some fund operators, of the heartache this MF Global situation is giving to them in the form of bounced checks and busted positions. It is disgraceful. But that is getting to be a tired, overused word in these times of general breakdown of equal protection under the law and regulations.
The metals had a nice rally today after the post-option expiration gut check.
Benny cooed some reassuring words but did nothing. The equity markets rose for lack of anything better to do.
Gold and silver have not yet broken out and set the 'W Pattern' with a strong close above resistance around 1780.
If they can stick a strong close the year end target of 1950 is activated. Right now I cannot judge the probability, so I am running a more balanced hedge. Europe weighs heavily on most markets.
Benny reassured the markets without really saying anything.
