Bon appetit! ~ The Risk Averse Alert

Wednesday, June 20, 2012

Bon appetit!

If the market isn't near a top from which it is likely to crater, then that top is very near...

NYSE McClellan

The second instance noted above when the NYSE McClellan Oscillator peaked in late-August last year is further highlighted for the simple fact the NYSE Summation Index then too had slipped into the negative only to be turned back up toward its 0-line, just as is occurring now. Weakness, though, setting up this present instance is rather more decided than that preceding last year's July-August throttling. The Summation Index's steady descent over the past 4+ months, going negative in May and remaining there still, projects very well my longstanding characterization. Overall the NYSE is trading garbage no one really wants.

And that is a big problem for weak hands who need much more than biblical quantities of liquidity to remain afloat, and this for much longer than forty days, as well. They need Glass-Steagall and a return to sovereign banking along with fixed exchange rates, this that the number of corporations whose bonds are AAA-rated would again require dozens of hands to count, rather than today's one (ridiculous!). In other words, what's missing is an immovable anchor cultivating financial stability and, itself, effectively regulating the conduct of investment banks. Real investment choice, where rock solid can be had in truth, rather than scammed by criminal ratings agencies still on the loose.

Those who are saying, "We cannot put the toothpaste back in the tube!" plainly are but types who actually enjoy eating s#!^... Bon appetit!

Fast Money
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