March 2nd, 2012
in Gary's blogging
2:50 As I have reflected on the many, many signs of a market pull-back I found that it was hard to see the trees because of the forest. So many things to consider and sort out the facts and opinions. The slant that anyone can take to substantiate one side or the other is most of the time blurred with opinions. Opinions are after all a thinking of an individual based on the facts as he has seen them. Like the rear most posterior portion of the body, everyone has one.
Here is one opinion. The $RUT has broken down of its sideways channel and small caps lead the way. A sure signal a correction is on its way. Currently $RUT is at 803.66.
Opinions while under the influence of the Merkozy duo's "Hopium" can be rather positive while ignoring impending messengers of disaster waiting just off stage. Opinions based on Keynesian financial beliefs will alter ones reality to support them. Conservative opinions have the same issues of proving its theory of "Market Relativity"in providing proof-positive the World is going to Hell in a hand basket. And of course there are the many opinions in-between. Several books have been written about this and I hope to keep my article abridged with a few tidbits to think about.
Here is an example of "Hopium" from the Telegraph.
@telegraph: "Herman van Rompuy this morning underscored the importance of EU leaders carrying their parliaments and electorates with them:
You now all have to convince your parliaments and voters that this Treaty is an important step to bring the euro durably back into safe waters. I am most confident you will succeed."
"Some more rhetorical gems from Mr Van Rompuy. Speaking about the fiscal compact, he said:
We here have achieved a fine balance between the 17, the 25 and the 27, workable for all.After today's signature comes the moment for ratification. You now all have to convince your parliaments and voters that this treaty is an important step to bring the euro, durably, back to safe waters.
I am most confident you will succeed. The treaty is short and sharp. Its benefits are clear and, above all, you are all gifted politicians otherwise you wouldn't be here. So let us bring the child to life."
"Describing the treaty that has been signed, which will - hopefully - prevent the 17 euorozone countries from running up huge debts, Herman Van Rompuy, the European Council president, said the treaty will bring an "economic and monetary union that is finally walking on two legs"."
(Everyone stand up and cheer - it must be true because HVR said so.)
Written by Gary