Unconfirmed "rumors" about coordinated central bank intervention dominating the trade late today likely means but one thing: NASA finally — finally! — discovered benevolent life on Mars willing to backstop the perpetual bailout of the trans-Atlantic banking system from now until the second coming of Jesus. Either that, or JP Morgan's book must be quaking badly. No doubt this rumor du jour is a perfect follow on yesterday's Senate Banking Committee shoulder massage attempting to relieve JPM's terrible stress from dodging sharks.
There was also a buzz surrounding extraordinary $SPY call option purchases today. No accompanying rumor of legislation requiring banks and financials to pay a tax-free dividend of at least 10%, so I will assume the call options belong to some desperate jerk at the Fed with nothing better to do than burn money to warm the hopelessly bankrupt economic albatrosses its utter lack of oversight created.
Washington has 72 hours to ram through Glass-Steagall, otherwise it appears hyperinflationary shutdown of energy production now likewise hitting food production (beef) will be moving into credit markets a la processes we have seen developing in Europe this week, whereby confidence in a dung pile made larger is irrevocably shattered, forcing interest rates higher and resulting in but further shutdown of the physical economy.
For now, though, with the EMU still intact we can pretend rumors of coordinated action from insolvent central banks means something other than a transparent fraud buying a few minutes more for trapped weak hands to offload a few more scraps of garbage.
* * * * *
© 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.
Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.
There's an easy way to boost your investment discipline...
Get Real-Time Trade Notification!