The Squeaky Wheel Gets the Grease ~ The Risk Averse Alert

Thursday, January 08, 2009

The Squeaky Wheel Gets the Grease

Nothing like a little panic to grease the wheels of progress.

Of course, I use the word "progress" loosely. Much chaos churns beneath a thin layer of ice separating "business as usual" from an uncontrollable financial-economic-social breakdown crisis. The bi-partisan symphony singing the President-elect's song today speaks volumes about how utterly fragile is the fundamental, underlying reality.

So, forget about the employment report. The real world has much bigger concerns.

Surely, the bi-partisan consensus we see rallying behind the President-elect must be disconcerting to those global players who are ratcheting up geopolitical pressure in the Middle East and in Europe. Secretary Rice's weak abstention tonight in the U.N. Security Council is a sign the easy days of reeking chaos might be taking a hiatus for some time.

This is good news to those looking for a market melt-up...

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benjamin said...

With all due respect, I see various other technically minded posts reversing bullish views based on this week's trading action:

Your post above was written before the sharp downturn Friday. What is your current outlook? The other readings suggest we are about to see a violent plunge down, not up.

TC said...

I guess my view finds some advantage in having seen the possibility of this week's pullback.

If there's going to be a violent plunge, it won't come until some decided underlying technical weakness develops. Right now, there is none. Therefore, odds are better the market will melt-up before anything terrible happens.

Thanks for the links! I'll be sure to get the good word out...

Malcolm said...

876-890 is where I have expected support and a strong rebound (975-1005).
Break 876 and I think we have a BIG problem…and I do mean BIG.
Best of luck to everyone,