History shows again and again
How nature points up
The folly of men...
Amazing how myopic is today's bullishness, completely enamored with price and oblivious to the many demonstrations of persistent underlying technical weakness.
Have no doubt. There is great danger present. Quite simply, it exists in the risk of some "unforeseen" shock.
Consider the political theater whose absurdity was highlighted yesterday. What's an aristocrat to do? All that has gone into building up the facade of credibility — the efficiency of the free market, the potency of Federal Reserve and the power of the institution of the Presidency — is crumbling before the very eyes of all the world. This while much illusory wealth hangs in the balance. Clearly, the facade needs a face lift.
So, I wonder, how better to accomplish this than some sort of earth shattering event ... something to direct focus on the efficacy of sacrifice for the sake of maintaining an inequitable status quo?
This is, after all, what every political move thus far since the collapse of structured finance has been engineered to accomplish.
Monstrous bailouts of bankrupt financial institutions ... a crudely varnished attempt at gutting the health care system ... all are intended to instill sacrifice for the sake of maintaining a ruinous status quo.
The effort is meeting intense resistance, too. So, this begs the question, then. Have all peaceful means been extinguished?
Now, this really is no place to be speculating on what forms calamity might take. Well enough is the fact that, amidst oblivious disregard for the fundamental bankruptcy of the global financial system and the growing ineptitude of staid institutions of power to effectively deal with this — honestly and with purposeful will to maintain the peace — the market's technical condition plainly is ripe for a negative surprise...
Fast Money's Timmy Seymour would be "amazed" if we saw a pullback of more than 5% from here. At levels displaying both over-extension and puzzling divergences? Nice call, Poindexter!
Contrarily, I'd be amazed if sometime over the next week or so, we don't see a pullback of 5% or more in a single day at the open. All the evidence is on my side. But if it's fantasies and fairy tales you prefer, be sure to watch today's "Word on the Street."
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