Laced Kool Aid ~ The Risk Averse Alert

Tuesday, November 10, 2009

Laced Kool Aid

Here's a timely thought... Now that it's possible to do whatever you want with client capital, protecting your piece of the action while at the same time brazenly lying to those foolish souls whose fortunes have been placed in your trust and ... and ... get away with it ... it just might be time for some fireworks.

Oh, now, don't get me wrong. I've heard the new advertising campaign from JP Morgan Chase — the bigger, better Bear Stearns — claiming that, you matter (where is that confounded bridge?). Besides, it's a new day and there's a new sheriff in town.

Well, he's not exactly in town. He's off to see the nation's communist colony, who despite their godlessness at least have had the decency to back Treasury until such time NASA finally discovers benevolent life on Mars to back their claims. One can imagine the earful Mr. President will be hearing.

"You must allow the yuan to rise vis-a-vis the dollar!" will bark Toto Reincarnate. To which demand that other race badly treated by the English-speaking world has nothing to lose in serving up a very special batch of wanton soup...

Vely funny, Mr. President. We can only hope for appearances sake they don't miss the bowl.


Day 4 of the volume-less circle jerk ... desperately buying time in the hope those money managers who know equity is dead money and largely have remained o-u-t ... might somehow lose their minds and join the new and not-so-improved cult of Jim Jones.

Kool Aid anyone?

Listen, if wave v of 5 off early-October bottom is forming a "rising wedge," then so be it. This special Elliott Wave is reserved for moves that have traveled "too far, too fast" (were there any better description of the post-March '09 bottom counter-trend rally?). Should a rising wedge, then, be unfolding in the fifth wave position of wave C of (B), $SPX 1110 will remain the highest it could possibly travel.

Fast Money
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Anonymous said...

"Your words in god''s ear", as the saying goes.....

Man this is painful for shorts.
I am starting to question my sanity, so a turn cannot be far off!

TC said...

Monday was tough swallowing, no doubt. Friday's CME rescue, pre-market and then immediately following the open, was bad enough. But Monday was tough. Despite this humbling, though, it remains plain the present push higher -- just like every one preceding it -- is being manufactured for the sake of transferring as much dead equity as possible into weak hands. Truly, it's not so much the distance traveled that is disturbing. Rather it is the time it is taking to accomplish the task. Yet does this not in and of itself speaks of just how very weak are the market's underpinnings? Despite more time elapsing in this counter-trend rally than one might have thought possible earlier this year, the fact that no increased interest is being displayed at this advanced hour is revealing just how fragile is the prevailing sentiment. On one hand there's the weak-handed majority dreaming of recovery and unwilling to press bets thrown deep into the loss column last year, and a strong-handed minority desperately attempting to offload bloated inventory (using the CME button to stimulate demand) while at the same time venturing to maintain the currency of their holdings (ala Buffett, whose BNI intentions I question).

In a sentence ... this is a disaster waiting to happen. So, hedge your short position if you must. Otherwise, I have found it helpful to step away from the mindless banter. It has in fact done my sanity some good, despite the burning urge to publish Act II on the "Mother Blanking Blank Blankers" theme...