Now we are getting somewhere

How bout this little sea change we have had?? Maybe I wasnt crazy afterall? Maybe stocks were not supposed to rally 80% unchecked? Maybe insane government interventions in the market is backfiring? Debts matter etc etc....
Everything you will read out there will be asking, "when do we buy the market?" the answer is when they stop asking that question. You might get small tradeable rallies but my opinion is we definitely have to go lower than 900 on the S&P. I would watch stocks like AAPL which may come under EXTREME pressure as funds need to raise cash, what better than a $235 aircraft carrier to do that - no matter how may freaking IPADs they sell. The hilarity of all this is that the US is absolutely no better than Greece or Spain or any of these over leveraged countries. The world of pain that is coming due to 30 years of insane policies and spending by governments will hopefully refresh and restore our governments and fill the halls with good smart people not just whores looking to get reelected. I remain resolutely bearish on the future of the US and thereby its equities - our debts are out of control and the piper needs to be paid. But if capitalism is given a CHANCE to work, what gets torn down will get rebuilt by new people who can do it better and smarter. Trade carefully and be patient remember how long this market rallied....

JB

Europe borrowing from Bernankes playbook

Europe wants to destroy the Euro Bernanke style....print print print. The global race to the bottom for currency has begun as sovereign entities are insolvent and massive printing of dollars and euros is the only way out. We saw last week what kind of havoc a small country like Greece could cause just wait till its Spain or for that matter California. For once last week my bearish convictions were proven to not just be fantastical ideas. We saw a tremendous panic last thursday but in all reality after the rally the market has had all year, grinding higher, mauling bears it was due and Im quite sure we will test the 200 day MA around 1090 and soon enough trade below it.
I have been amazingly busy the last few weeks and thus have not been able to blog - last week was the stuff dreams are made of for me. My fund is doing quite well and Im hopeful we are getting back to more normal volatility.

More soon

JB