Tuesday, September 06, 2011

The sell off continued into midnight ET last night, eventually losing 2.9% from Fridays close. It made a pretty cool double bottom at that point, and rallied up to retrace just about 50% of the loss from yesterday
The, "reason", for the rally, is Government intervention, or some times called "MANIPULATION", as the Swiss pledged to "defend" their currency, Swiss franc slumps, European stocks recover poise - AP, as they pegged it at 1.20 to the Euro, effectively putting a CAP on it, which sent the Dollar lower, and commodities HIGHER, which will send energy and commodity stocks higher, which will send our markets higher, etc etc etc! This was done with the blessing of Bennie Da Pumper of course, as it gave him an uncontrollable case of the giggles to see his life's dream in action, that being the fulfillment of his NEW self imposed mandate of CREATING inflation, rather than that old fashioned one of actually trying to control it. His idea of stimulating economic growth is to make the middle class pay as much as he can for gas and food products, which HAS to increase GDP and production, RIGHT??!!!
What a wonderful way to solve all our Economic problems, simply manipulate your currency!! Of course, higher energy costs are going to send our economy down the tubes, even further, and it does NOTHING to solve the main reason for the sell off yesterday, that being the Sovereign Insolvency and the under capitalized European, and US, banks, waaaaaaad ever, IT'S ALL GOOD!
The rally could be an A-B-C retracement of the sell off, in which case we finish that off and then resume the thrust into the depths of hell, one good thing is that I now have a "point" to trade off of, that being the double bottom, it wouldn't surprise me at all that we would go back and "TEST" that low after the open this morning. 
Regardless of how the manipulation plays out, I won't be interested in attempting a LONG idea unless we can get over the high from last Wednesday and Thursday.


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