Well, I think we skated over some thin ice yesterday. The rout never came, as I suspected it might with the extremely low volume on the boards. In that environment, things can go bad quickly and deeply, but they didn’t, even with the “bad news” out of Europe.
So, does this give any information that could be helpful to executing our strategies Well, the thing I took away is that the big money is still not convinced that Europe will survive and it is not convinced it will not survive the financial crisis. Uncertainty still rules, but in that is some good news – the big money still believes that Europe can pull off a comprehensive and effective plan to stem the crisis. If it didn’t, does anyone thing for one minute that the DIJA would still be hanging around 12,000, or the S&P 500 would still be above 1200, much less 1250 No, I believe that the jury is still out on whether Germany and France can maneuver the rest of the Eurozone members into a tighter political and fiscal/monetary structure to arrest the crisis, but, clearly, big money is still thinking they can get it done.
In the short term, only the European Central Bank can arrest the crisis by finding a way of providing unlimited support to restore confidence in Eurozone government debt. A Franco-German bargain on a more tightly integrated euro zone, with more intrusive economic discipline, may be the price for Chancellor Angela Merkel’s assent to such ECB action. If France were ready to accept a loss of budget sovereignty with greater European intrusion to ensure EU fiscal rules are respected, Germany might be willing to drop its opposition to issuing common Eurozone bonds.
The above distills to the essence of where Europe is now, and where it needs to go. Can it do it If there is enough political will, it will get done. In the meantime, though, how would you like a mathematical trading system that never loses, sort of …
What if you had a mathematical system that never takes a loss You just have to have deep pockets for those stocks that occasionally go into irrational mode. I have such a system, no psychology, no anxiety, no trying to get all the indicators to line up. No stops, no losses. I just wish there were a way I could sell the method.
Talk about doublespeak – never take a loss but be prepared to take a loss. Wow! That kind of marketing won’t help sell this “foolproof” trading system. Just as well, because there ain’t no such thing anyway. If such a “magic bullet” existed, well, you know the rest – why sell it
Okay, lately, my mission has been to point out fundamentally good data that suggests if we can get past the political nonsense on two continents, both the global economy and the market will respond positively, so here is some more …
Home Depot Inc. raised its fiscal-year outlook for the third time in six months, as it reported stronger-than-expected quarterly results and it raised its quarterly dividend by 16 percent. Home Depot’s sales at stores open at least a year rose 4.2 percent globally, including a 3.8 percent rise in the United States.
Trade in the day – Invest in your life …
