Today the financial prophets and pundits came forth in groves sprouting up like new sprouts in Spring. Everyone wanted to be the first to either tell what you knew already; that Mr. market fell over 2% in the opening hour or that Dr. Ben's speech was the cause of it. Then the Bear pundits came out of hibernation to spell out doom and gloom is just around the corner - again. Really kind of funny as I just want to make some money, not write about someone else explaining how it is done.
My problem, and many like me, is that we are having a difficult time figuring out this 'casino' of finance. It doesn't help that it is being manipulated by the Financial War Lords of Dr. Ben's Round Table, DaBoyz and the “Five-Fingered-Financiers' working the midnight shift. Three years ago the market would have risen after yesterday's last minute ascent, but no, it crashes the next day instead.
Follow up:There isn't a chart or wizard around that could have predicted today's fall, but I am sure someone at the 'Main Stream Neurosis Broadcasting Company' (MSNBC) will be able to do so tonight. It is crazy and dangerous for any legitimate trader or investor to make any trade a profitable one. Oh yes, there are those who were lucky and speculated right; after all you do have a 50-50% chance in guessing correctly.
The Risk / Reward ratio is not in the favor of the cash crowd right now, therefor I sit contently on my hands and a wad of cash waiting, just waiting. You, like me, will know when the right time has come only I will have cash to take advantage of the situation; will you? I will keep my class A corporate bonds and several class “A” stocks paying dividends, but the trash is being thrown out.
Gold closed down at 1618, GLD closed at 157.30, SLV closed at 30.37, SSO closed at 57.64, SPY closed at 139.89, WTI oil closed at 101.92 and Brent closed at 122.01. We had a minor sell-off on moderate volume at the close but was quickly snatched by the 'dippers'.
The 500 at the close.
The DOW at the close.
The Russell 2000 at the close. Notice on the index list below that the small cap lead the way down percentage wise. Take that as a shot across the bow as the large caps CAN NOT go higher with out the small caps going along too.
Without question a market top is within sight. Will it be an intermediate top with further gains down the road or are going to see a pull-back like the Bridal Veil Fall in Yosemite or something spectacular resembling Niagara. I personally don't know of course, but this rise has been too steep and even today's pullback can not be classified as a correction.
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That is all for the day. Drive home carefully and see everyone tomorrow.
Written by Gary