So many lovers of well-groomed dog tails out there. "You just never mind that collapsing debt pyramid," they say, redirecting the attention of those many millions sporting gills with a never more irrelevant, "Hey, how about those existing home sales!"
A similar variety cites reduced leverage of their firm's balance sheet as some sort of positive now. Bzzzz! Wrong. The name of the game is inflate or die. An investment bank reducing leverage can be likened to a nation state imposing severe austerity measures. Both only are hastening their demise.
Such is reality when wildcat finance is allowed to run roughshod for any length of time. Exposure built in requires a virtual impossibility: eternal perfection. The minute some outlier threatens what otherwise is a small part of the business, unstoppable chaos sets in.
So, don't you cry for Goldman, Mr. Mack. You'll get your turn.
When the swoon hits your eye like a big pizza pie ... want some more, eh? Well, RSI is indicating you'll get your wish. This is as weak as a weak bid gets.
Just how much more selling remains immediately in store is somewhat uncertain, though. I would venture the low of May 25th is about to be taken out, however, and quite possibly decisively, as well.
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© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.
Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.
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