Treasury Secretary "Henry Potter" Paulson, doing his best Nero impersonation, whipped up allies on Weimar Street with a rousing speech whose most notable accomplishment was to take video media full circle. What began with motion pictures, absent sound, yet full of meaning, having long been enhanced with audio, is now completely losing all mass appeal with voices seemingly incongruent. This, however, simply reflects the utter dullness of a wide audience unskilled in reading between the lines.
The star of "It's a Wonderful Knife" should get an Oscar Nomination. The brutality of Potter's dialog scripted as a thinly veiled genuflection to the Gods of the black magic of the marketplace (a.k.a. the City of London) might have been lost on all who mistakenly believe the holders of such high offices as U.S. Treasury Secretary serve the People in the interest of Posterity, but all with ears that hear understood the sound of financial terror soon to make Bear Stearns look like a Sunday stroll through Central Park on a sunny, summer day.
The speech that seemed to say nothing of significance was, instead, given by a modern-day Odysseus leading troops concealed in the belly of a magnificent horse. Surely, the intent is no different than what ancient warriors had slated Troy to suffer. Chaos and destruction are to reign. Trusting souls alone, oblivious of grave danger within, would accept the monstrosity of a magnificent deception without even so much as question the dream-like scene before their very eyes. Project Trojan Horse is a go, and Secretary Paulson simply has done his part to incite his Wall Street allies to battle.
Look kids, money men like Potter lead busy lives. They certainly do not waste their time saying nothing. Despite such ridiculous financial reform as Wall Street's Odysseus' having as much hope, today, as a snowball in Hades, the "nonsense" of Paulson's message might best be seen as a bellows cleverly concealed to fan the flames. Yes, voices in the mainstream smell smoke. Yet, apparently the fog is too thick to see how complete is the imagery of Nero fiddling while Rome burns. Chaos and destruction are the aim of Project Trojan Horse.
My thanks to Tony Nelson for seeing it in his heart over the weekend to allow Jeannie to blink me tomorrow's Wall Street Journal. You can read Friday's Risk Averse Alert commentary if you haven't already. As per what to expect Tuesday, it might be as dull as the minds who simply do not fathom the utter brutality of the Washington - Wall Street axis.
Right now, I should only add to Friday's remarks my diminished willingness to suppose the S&P 100 rising toward the 630 area might present an opportunity to take on a quick OEX "short" position. It seems quite possible the S&P 100 could fluctuate in a fairly narrow range for the duration of this week. Thus we might not likely see the kind of volatility in one direction or the other critical for profitable options play.
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© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.
Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.
Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.
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