Delivering the Weinerschnitzel ~ The Risk Averse Alert

Tuesday, May 25, 2010

Delivering the Weinerschnitzel

PREDICTION: The minute Germany leaves the Euro, the global banking system will rapidly accelerate its spiral into the abyss, leading to a crush for capital so extreme as to make May 6th's flash crash appear to have been caused by disoriented carrier pigeons.

Now, per today's reversal and the claim made by Fast Money traders suggesting Goldman Sachs led the way higher...

company chart (GS)

If this is leadership, then there is just one thing left to do: look out below!

But seriously...

SPX 5-min

Today finally saw relative strength exceed to the downside its previous worst reading registered during the S&P 500's decline over the past eight days. The trouble is this did not add any clarity aiding discernment of the Elliott wave count over the interim. Despite this mystery, however, it is clear the market's decline since Thursday, May 13th remains incomplete. This morning's dive carrying relative strength to a new low says as much now as it did on Friday, May 14th.

So, maybe Goldman Sachs is telling us something. It could be that, wave 3 down (since May 13th) thus far consists of a series of first and second waves, with one big third wave due to unfold any moment now.

Likely to receive guidance from the British — the king of bankrupt nations — on how to accelerate current global financial chaos (a British offshore banking specialty) prior to meeting the Germans, Treasury Secretary Geithner, upon revealing proposals for "solving" the Euro crisis might be given a weinerschnitzel up the you know what in response, so let's keep an eye on young Timmy's gait when he arrives back home on Friday. This might be one of those occasions where, if he is smiling, it could be a very bad sign, indeed.

Fast Money
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