Another low volume Monday spent driving dead equity higher...
Where have we seen this before? Is this a gift from the god of oblivious suckers?
No doubt, fading technical underpinnings are a convincing arbiter in what is fast becoming an increasingly one-sided debate. Yet from Goldman Sachs today came definitive answer on high...
The late-June period highlighted above could offer a blueprint showing how, between now and October options expiration (10.16.09), zero progress in either direction might be in store.
The Elliott wave count, of course, highlights the possibility that, the very best of 2009 is gone ... forever ... and the remainder of the year threatens a big, rotten egg being laid on the stock market. For the record ... I am not optimistic toward the prospect of major indexes finishing positive on the year ... and March bottom could be challenged sooner than most presently imagine.
Building technical weakness easily identified above is further complemented on other fronts, and combined, this is exposing the stock market's growing vulnerability. Another crack or two (which seem rather likely this week) followed by a suspect attempt at keeping everything patched together (going into expiration), and the stage could be set for a thunderous thud.
And speaking of a thunderous thud, what value is Goldman's massaging financials when in a matter of days you can go from CEO of a major bank at the epicenter of last year's monstrous swindle to be facing a bevy of legal indictments? Is not the Ken Lewis story a lesson in unexpected events coming out of left field? Then, how does this breed confidence in the sector?
The Goldman report upgrading large U.S. banks to "attractive" in my estimation rather appears a fine demonstration of Wall Street's desperate need for dumber suckers...
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