Suddenly Trouble ~ The Risk Averse Alert

Friday, January 22, 2010

Suddenly Trouble

As you get older days fly by. Yet, like everything else, there's always an exception...

Today ended what seemed one of the longest, 4-day weeks ever!

And wha la! Clarity...

SPX 5-min

Like last Friday, relative strength was sold down to an extreme (below 20). But unlike last Friday, there was no recovery today. Heck, not even a price-RSI divergence yet. So, there's nothing even indicating a bounce is imminent!

What this means, then, is Monday could get ugly. The greater bulk of fast fading technical measures unanimously confirm this.

Considering matters politic ... do you fathom Mass Strike effects in Senate Leader Reid's spat with the King of Monetarist Monkeys? No time like the present for the incumbent to take a strong stand bolstering his re-election campaign.

Or will it be another resignation? What precedent hath Chris Dodd wrought! Yet more than changing personalities, only changing policy could subdue a growing discontent. And has there ever been in all of American history so much abundant opportunity for doing this peaceably? "The man" is so incredibly vulnerable now. Never should have let things go sub-prime, I believe.


Technical similarities present in 5-year U.S. Treasury yields, now versus early-2002 ... just before the stock market began to crater ... caught my attention.

A coming rush into the safety of U.S. Treasuries (desperately seeking yield) could very well be a coming, common theme.

Fast Money
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