New Guests Arrive at Garbage Party ~ The Risk Averse Alert

Thursday, August 16, 2012

New Guests Arrive at Garbage Party

Long dead animal spirits apparently can be made to appear living when investing is turned gambling with aid of an Ouija board summonsing the spirits of zombies running the trans-Atlantic's central banks...


Oh look, new guests have arrived at the garbage party! Never mind the 200-day moving average of the NYSE Bullish Percent Index suggesting there's little punch remaining. Not that this measure alone is indicating so much. Has there been anything covered here for God knows how long not signaling much the same dilemma?

Why, this must be the reason many of the stronger guests have left the party...


Well, at least some people apparently are thinking ahead to the day when European oligarchs come back from vacation to discover their house, once a castle, has been reduced to a cold pile of stones in a party paid for with more insolvent debt than all the central banks throughout the galaxy can deal with (never mind the insane asylums of the trans-Atlantic). We can all rest easy knowing there still is a mountain of AAA-rated toilet paper with which to clean up this mess, and a private prison system which to fill with ratings agencies and government officials (Greenspan!) who sanctioned it.

If you wish to swallow more evidence along the same lines indicated above, just take a look at the S&P 500's Bullish Percent Index. Exposed are bonafide suckers holding tight to their garbage while fewer S&P 500 components are bullishly disposed in comparison to a few months ago when the index more or less traded at today's level.

By the looks of it today's party is being hosted by SNL's "Dieter" of old (Mike Myers) captivating those performance chasers among guests to "touch my monkey, pet it, love it!" It's the love likely to prove toxic.

Fast Money
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