A Chicago Minute Saved in Countdown to Independence Day ~ The Risk Averse Alert

Monday, July 01, 2013

A Chicago Minute Saved in Countdown to Independence Day

Only recently bankrupt albatrosses of bailout and all manner of misallocated credit were able to hold throughout the day the CME-goosed bid stimulating the first five minutes of trading in New York. Today, however, only the first minute's gain remained intact at the close. Now, I may be the only person on the planet making hey over political machinations threatening the fate of an unprecedented subsidy afforded swindling parasites of finance masquerading as creative progenitors of progress, yet the energy swirling from these fingertips responding to obvious changes in the wind, and this in defiance of continuing mass adoration of Caesar's threadbare clothes, itself occurring in spite of goosebumps revealed by a rising tide of debt revulsion, evidently is having effect.

I am being facetious, of course. More likely weighing on scamming skimmers is sparse interest from witting dupes, the likes whose continued absence has been shrinking the volume of trade to barely enough now to bank a Chicago minute. The gullible crowd evidently has moved to Snowdenville, where a not so covert financial war with Europe promises to accelerate capital flight needed to sustain the illusion of value in an ├╝ber levered global casino's principal currencies, notwithstanding these being persistently debased by "regulatory" authorities with all the concern of a mafia family for the broad social utility of their actions. What a mess. Meanwhile, we continue waiting for leaks disclosing who cut the World Trade Center's main support columns. Anything Ed? Cave dwelling, monkey bar climbing, dog gassing rats never passed in my book. Not with the money the U.S. spends on its national defense and intelligence. What's that about "blowback," Glenn?



While the precarious state of various technical measures noted here last week remains relatively unchanged, the present parallel with early-November 2012 noted above lends sight to possibility the S&P 500 is at near-term risk of sinking below its 200-day moving average. Further elevating this risk is the fact that, measures of the market's internal state are in a weaker position now than last November. Most notably are the McClellan Oscillator series and the NYSE Bullish Percent Index.

Now, on the one hand it remains entirely possible a 4th wave of 5 waves up from early-June 2012 is forming off May 2013 peak. Thus might the market's presently weaker underlying technical state rather be a typical manifestation of 4th wave versus 2nd wave dynamics.

However, also possible is the prospective view detailed here Friday, wherein May's peak stands to mark 2013's high. From this peak a decline of considerable consequence could be commencing, with a good bit of time and space remaining before it is completed. Assuming this anticipated decline will unfold in 5-wave fashion, we might expect the 3rd wave [down] more likely to commence once the S&P 500's 50-day moving average has fallen below its 200-day moving average. So, given the market's presently weaker underlying technical state versus last November, imminently in order could be a sharp decline putting the S&P 500's moving averages on a negative trajectory supporting the very reasonable prospect the index falls below 1000 by early 2014.

We might do well here, too, recalling events of Massachusetts Patriots Day and contemplating whether Anglo-American intelligence-linked scoundrels animating Snowden might have something up their sleeve awaiting Independence Day on Thursday. Maybe a "Red Brigade" citing rationalizing their spying and complicating Putin's desire to silence Ed? Anyway, heads up...


Word on the Street
* * * * *
© 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.


There's an easy way to boost your investment discipline...

Get Real-Time Trade Notification!