The Risk Averse Alert

Post-2008 crisis moments finding a garbage fan club euphorically insisting their equity treasure, indeed, is "priceless" typically are followed by a brief time spent in vain waiting for allies who might help extend the game of make believe that has become "capitalism," both at the margin of equity finance, as well as at the core of the trans-Atlantic banking system (where a captive U.S. Treasury singlehandedly sustains the illusion of the system's solvency). However, reality invariably has brought discovery that, to every rule is an exception. To wit, not always is one man's trash another man's treasure (a fact the U.S. Treasury, itself, now seems doomed to learn the hard way in an approaching central bank flood exploding the cauldron from which capitalism's demise has been cooking for decades)...



In the post-2008 period the 10-day moving average of the NYSE Advance-Decline differential (blue line) has come to represent a barometer measuring pressure to put a shine on the bottom rung of the capital structure. Duly noted today is this measure's behavior in July 2011. Not until the advance-decline differential's 200-day moving average (red line) was pierced to the downside did things really turn dicey. The same is seen in the first half of 2010 leading up to the "flash crash" of May 6th that year.

On account of this was raised yesterday's suspicion that, an anticipated nasty December likely will not fully materialize until next week at the earliest. It will take some time before late-November's shine turns dull. Of course, for this Washington all too likely will be blamed. Yet what specific cause will be assigned remains to be seen.

Truth is the call for a Wall Street Sales Tax is growing. At the same time Attilos, the Shadow Greek Prime Minister and Nobel Peace Prize winner—the man whose "humanitarian" leanings appear guided by a frantic panic to prop up his bankrupt benefactors—probably has received word of big trouble coming from points northwest of the Middle East, thus explaining his implied promise today to increase the supply of Treasury securities made available, directly or indirectly, to finance his al Qaeda buddies in Syria. Not to be outdone, Jackboots Jane over at the State Department, knowing the road to the White House these days leads straight through the City where Venetian power brokers connive to disguise murderers with prizes branding such likes peacemakers, did her level best to pave the way for her neo-Nazi replacement whose name is Susan Rice. So, not only is Team Fraud's political machine verifiably insane, it appears plainly desperate, as well. If you are shaking your head up and down in agreement, then wisdom, indeed, is yours instinctively, as you are well-advised to look out below and watch your head equally...



© 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.

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