NASDAQ Nakedness in a Dead Bank Bounce ~ The Risk Averse Alert

Thursday, February 07, 2013

NASDAQ Nakedness in a Dead Bank Bounce

It's taking everything Dr. Frankenstein has got to plug the drain through which capital at the pump-and-dump has been leaking ever since his predecessor, King Ponzi, cast a curse uttering the words "irrational exuberance" with prescience enough to foretell the bitter fate of those blind, deaf and dumb detractors whose faint pulse Capo Confetti now claims living proof his voracious appetite for garbage higher up in the capital structure is life saved from Great Depression...

$NAAD cumulative

It's times like these David Copperfield levitating across the Grand Canyon seems a cheap imitation of the illusion the Fed is creating. NASDAQ's cumulative advance-decline line still paves the way for an experience a good bit more harrowing than Copperfield's, foretelling a day when many a tarnished jewel will be bloodied, cast upon the rocks at canyon's bottom.

Much like other major indexes, NASDAQ's levitation is strained, and yet potentially still possessing strength enough affording time to line up some dozen more unsuspecting souls willing to join the David Einhorn inspired Apple slaughter. Nevertheless, I am willing to venture when the market's current dead bank bounce has reached its zenith, this within sniffing distance of today's nose bleed territory, NASDAQ will fare poorest of all. A moribund banking system—hopelessly insolvent—and hemorrhaging sovereign treasuries should see to that.

Word on the Street
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