Fleecing the Willing ~ The Risk Averse Alert

Thursday, March 24, 2011

Fleecing the Willing

Anyone thinking those first-world, export-oriented nations arrayed upon the globe today (Germany and Japan) are about to docilely subsidize forever those among the hopelessly bankrupt of the Anglo-American sort really ought have their head examined. Likewise, while the doctor is inside, one would be wise to ask: could some element within Germany be prodding the Irish to threaten collapse of its foreign-domiciled banks?

Let's put it this way: for the Irish to come off threatening (as was reported the other day) is easy with the right backing. Haven't heard a word since. Go figure. (It stands to reason that, some alternative arrangement would need some time to coordinate appropriate agreements.)

You can be certain that, the thinnest of bids sustaining the market's advance over the past few days leaves me by no means the only person on the planet who perceives this imminent threat of chaos unleashed on those private enterprises that otherwise are wont to label today's dilemma a "sovereign debt crisis" when in fact it is a crisis of their own making.

So, with yesterday's sub-prime lender no longer on the menu, today's sub-prime financial services provider is left to fill the void with but meager support for the riskiest claims existing within a hopelessly bankrupt financial system. Plainly, this capacity is exhausted.

Believe it or not, since March '09 bottom there have been only two instances similar to the present one. Both, if nothing else, suggest last week's low was not bottom to the market's decline from 2/18 top.

That being said, nothing yet alters prospect of the market's imminent collapse over days ahead. This view garnered from the state of the market's underlying technical condition remains unchallenged. Not one thing strained or overlooked might be thought defying this conclusion.

NYSE 5-min

Yet there appears some room to further fleece the willing. The above view of the past two days — a move seen ending the lift off last week's low — presents a typical RSI configuration coinciding with a five-wave advance. So, some hours remain before the willing at last are fleeced, and this quite possibly, still, with a vengeance...

Fast Money
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