The Risk Averse Alert

No need to assume today's turnaround was anything other than the view presented here Friday manifest. One thing not mentioned in that outlook, though, was today's volume pickup. Here's how we read that. Put on a gruff voice, give it your best New York accent and say, "Hey, you want some garbage? Here, have some garbage."

No need to assume, either, the bond market is confused by Capo Confetti's QE intentions. Probably a fairer conclusion than that promoted by an oh so penetrating, Venetian-owned financial media per the 10-year U.S. Treasury now trading above 2% is that, everyone and yo mamma expects Confetti to remain busy sharpening his electronic scissors, ensuring the flood of liquidity raining from the Fed for the purpose of feigning demand for trash higher up in the capital structure continues unabated.

And did anyone in Congress today bother asking Confetti whether the Fed is aware its insolvency will be rapidly exposed in a rising rate environment? Shhhhh...

But seriously, why would a House of Representatives with the party of Make Work and Money Grab in the majority ask such a question when Confetti's dilemma portends a U.S. Treasury backstop whose pending necessity could only serve the party's longstanding objective of gutting federal outlays otherwise promoting the general Welfare? These agents of the Venetian mafia are a lot more transparent than the mafia's media (a.k.a. "The Patsy Protection Team") evidently is capable of deciphering.



Accompanying the past couple days' NASDAQ-focused Elliott wave count exercises is the same applied above to the NYSE Composite Index presenting two alternatives, one in black, the other in blue.



The same, too, is applied to the S&P 500 above. We could have presented two viable alternatives here, as well. It's possible wave 3 of (c) has been forming off early-June 2012 bottom, leaving waves 4 and 5 of (c) still to unfold.



© 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.

Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.

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