Sell the Winners, Squeeze the Corpses ~ The Risk Averse Alert

Wednesday, December 05, 2012

Sell the Winners, Squeeze the Corpses

About the only thing "company" specific exposed in today's trade can be summarized by an AAPL crushed in the company of banks and financials whose "rising fortunes" come on the alter of Capo Confetti's hyperinflationary shutdown of both the physical and financial economy. Today's Citigroup announced reduction in banking system labor costs only dooms tomorrow to more downwardly spiraling revenues nourishing a negative feedback loop the criminally incompetent Fed appears determined to perpetuate with its hyperinflationary policy venturing to prop up a mountain of unproductive debt otherwise choking the banking system.

What kind of imagination does it take to fathom the future awaiting hopelessly insolvent bailout junkies if AAPL can be bruised 6+% in a day? Is it not abundantly obvious that, too big to fail titans of tyranny are capital starved albatrosses driving counterproductive government policy at every level? Am I alone wondering whose Treasury band-aid is but one revulsion away from being ripped off to expose a banking system beyond any policy response capable of extending fantasy sustaining the group as going concerns? Furthermore, are tax-related investment considerations going into year end but AAPL-specific?

All told, can there really be any surprise how quickly crack Western intelligence agencies this evening are reported to be detecting unusual activity around Syria's chemical weapons facilities? It's time to tell the little children Santa Claus will not be coming to town this year on account of necessity to impose a global "no fly zone."

Now, all of 147 more NYSE-listed issues advanced today versus those that declined. Given today's 1% rocket reversal from this morning's bottom, that is pathetic. Sort of reminds me of positive days preceding the market's crash of October 1987. Suspiciously then, too, very few listed issues were participating during notable advancing days prior to the lug nuts falling off the market.

Today's volume bump only leaves one to suppose the market's apothecary technicians specializing in animating corpses have reached a point where there is little more they can do, just like September. Had those who were squeezed this morning not so decidedly moved late in the day to again sell short the garbage they were forced to buy earlier, then we might suppose there remains time to extend fantasy believing in all things related to Santa, including the market's rally since mid-November. They say the only sure things are death and taxes. Oddly enough, these very two matters hang over the market like a black cloud.

Word on the Street
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