No Volatility Index printing above its early-April worst? No market bottom.
Now, while the CBOE Put/Call Ratio is printing above its early-April worst, the measure's continued upward momentum suggests bottom to the market's pullback from September peak has yet to be reached.
Meanwhile the S&P 500's still negatively disposed relative strength (top panel) and momentum (bottom) puts an anticipated trip below the index's 200-day moving average squarely in the cross hairs. Whether this occurs promptly or not until after some more dicking around in fantasy land a la every recovery we have seen since September peak remains to be seen.
Now, about this "fiscal cliff" made an issue by heavily subsidized and hopelessly insolvent frauds. These folks need to answer one simple question: do sales taxes on practically everything that isn't nailed down negatively effect business? You ever heard a CEO rail against state a local sales taxes because these retard consumer demand for their products? No? Then a financial transactions sales tax is perfectly in order. Given trillions of dollars of turnover per business day, the revenue that could be generated to fill the void beyond the edge of the "fiscal cliff" would be had. "Problem" solved.
Are not the "fiscal cliff" croakers generally the same crowd calling for a fascist "flat tax?" Perfect! Let's give it to them ... right in their front yard. Simply bring to mind all the things for which the average Joe or Jane dutifully pays a sales tax, and as all men are created equal your congressional representative should have no trouble understanding where you're coming from. A financial transactions sales tax is long overdue in an economy where finance dominates. There is no reason this prospective solution should not be on the table.
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