Tuesday, May 28, 2013

I'm Leaving the Country


Hahahahaha, this is the funniest damn thing I've seen in some time:
IShares MSCI Australia Index Fund Getting Very Oversold

That outfit should just concentrate on sending that guy out to yell and scream on Bubblevision, instead of trying to convince us that an RSI of 26 on the daily chart is, quote, "OVERSOLD". What they probably should have done is tell us why the stinking index lost 3.43%........ IN ONE STINKING DAY!!!!!!!
Can you imagine if the SPY had lost 3.43% Friday, wooooooo weeeeeeeeee......... or, I should say, YEEEEEEEE HAAAWWWWWWW..........hahahahahahaha, wad ever....



Being the constant cheerleader's they are for Da Street, as they do their best to try and suck what ever retails are still on the side lines into the market by, like, trying to convince them that a 26 RSI reading on an index is over sold, it doesn't surprise me that they just happen to casually neglect to mention that the SPY, on a weekly basis, and based on their own parameters of over bought and over sold, IS AS OVER BOUGHT AS IT'S EVER BEEN IN IT'S HISTORY! Yeeeaaaaa, we don't want to mention some thing like that, do WE......... we can't suck'em in mentioning things like that, no sir'reeeee!

ANYWAY, enough of the bull shit, LOL, it's fun stuff it is. I'm not actually leaving the country, I'm just leaving it on an index basis, as I consider the EWA to be MUCH more attractive as an "investment", not just because of it's 5.39% dividend yield, compared to that paltry 1.93% on the SPY, NOR, because it's so MASSIVELY over sold on the daily chart........excuse me a second..............HAHAHAHAHAHAHAHAHA...............HAH! No, actually, I think the dividend is going to end up going HIGHER, mainly because I think the index is going to go LOWER, and I'm also "hoping" that the Aussies have enough common sense to solve their housing crisis by doing the RIGHT THINGS, like NOT using tax payer money to bail the bank's out and allow them to pay themselves BILLIONS of dollars in bonuses from that tax payer money, and instead do what we did when we did it RIGHT during the S and L crisis when we actually took the bastards OUT, and NOT allow the main perpetrators of the crisis to write the rules for the solution, like we did when we had the two biggest crooks in Congress and the Senate create our, quote, "SOLUTION", with the Blarney Flanks-Christofer Doody TBTF bull shit. 
ANYWAY (and, AGAIN, sigh), that EWA chart is EXACTLY what the SPY chart will have to look like before we ever get the MOST anticipated pull back in history, which we WON'T get until it's NOT anticipated. It had a "2T", a beautiful one in fact, where it made a new high in March, then had a shallow pull back for five weeks, sideways actually, then made a NEW high the first week of May, with MASSIVE divergences in the RSI and MACD, followed by a "TRAP" the second week when it gapped down from that high UNDER the LOW of the prior week, wooo wee, nasty stuff it was, it's had three weeks down now, but based on Da Street's parameters of OVER SOLD you can see we aren't even CLOSE, yet, as the RSI is at 43.43, and we ALL know it has to get to 26 before it's over sold.....................
I actually started this rant because I took an itty bitty starter position in EWA on Friday, and when I was looking at the news on it on FinViz the first article was the asinine piece on the RSI, I actually think it's going to $24, as that will fill the gap from December 31st, where I'll probably add some more and sit back and see what happens. The actual closing price that day was $24.67, so it doesn't HAVE to go to $24, it's just that that's very nice whole number support going back a couple of years, and it, SHOULD, hold there, eeeeerrrrrr, actually, I should say I, "HOPE", it holds there, which is my favorite strategy of course, HOPE that is. 

I'm actually using my udder site to kind of build an Aussie news and trading site where I can check up on them, since I'm changing Countries, and they've got some verwy interwesting "Funnymentals" going on there, the big one is the housing situation, Australian Housing Bubble Has Chinese Overtones, and, WOW, shades of Cali-PORN-NII-AAAA at the height of our housing bubble, the average income for Aussies is about $50K, 
http://www.censusdata.abs.gov.au/census_services/getproduct/census/2011/quickstat/0
while the average home price is, and get this, $504K in January, http://www.bloomberg.com/news/2013-01-04/australia-home-prices-to-rise-on-rate-cuts-mortgages.html, wooooo weeeeee, shades of PrunePickerVille, when they were giving loans to janitors making 40K a year who had ten kids so he could buy the AVERAGE house there for $550K, and we all know how THAT ended.........RIGHT!!!??
That's a big problem for the EWA of course, as fully HALF of the components are Aussie banks, http://us.ishares.com/product_info/fund/overview/EWA.htm, and if the crisis actually starts to go into full bloom mode, the index will get hit hard. It may hit the yield as well, for if they do the RIGHT thing like I "hope" they will, and take the banks OUT, then the remaining banks may have to eliminate their dividends like our's did in order to come into line with what ever new metric's they have to meet for solvency. Some thing that may offset it a little is that 20% of the index is made up of their material and mining outfits, some of which pay some hefty dividends, so if the WORLDWIDE ECONOMIC BOOM that Bubblevision claims we are in continues, maybe they can cushion some of the shock, plus, I don't think China is going to continue to slow down forever, hell, they may start CREATING some ghost's to occupy those Ghost Cities they have, and if they create enough of them, hell, maybe they'll build some new ones.

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