Where Have All the Bidders Gone? ~ The Risk Averse Alert

Monday, March 28, 2011

Where Have All the Bidders Gone?

With so many analysts and investors expressing desire to be fleeced (ready to "buy the dips"), and with Big Board-listed issues appearing destined to join their junior brethren of NASDAQ fame in a long, slow dance of years fallen from record peaks, capacity to further extend the market's levitation and keep so many bullish sophists in their present, wishful state might proceed as follows over coming weeks toward its ultimate exhaustion, leading to a spectacular crash in the stock market (if not the entire trans-Atlantic financial system)...


Here's the problem with today's low volume. Those many over-leveraged, under-capitalized financial institutions held captive to the hollow prayer called the "global recovery story" are meeting in their attempts to offload risk ever fewer suckers willing to spare their last dime for a bigger equity stake in the giant dung pile euphemistically called the U.S. economy. So, either extraterrestrial life willing to back the U.S. Treasury had better soon materialize, or stocks must go on sale, that "cash on the sidelines" (there for good reason yet still) might be coaxed to its grave.

Thus, an inexorable increase in volatility where the capital starved act to entice a bid — furthering volatility's increase already evidenced since 2/18 top — might develop over coming days along lines depicted above.

This, right now, appears a best case scenario. Worst case, the market crashes immediately. Either way, everything is leaning toward that end, sooner or later — an awful eventuality whose passing presently is believed having a high probability of occurring sometime this year, indeed, even as soon as this week...

Fast Money
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