4. As expected markets traded higher yesterday, the buying up to the Bollinger band was mostly sponsored by PPT and their friends from wallstreet but was not substantial. Same is true for Japan earlier today but was rather an opportunity to get short. Heading towards weekend the scary trade will drive markets rather lower since we have not reached the targets of the current leg which I will explain later with a chart. The risk now is clearly on the long side over weekends until the situation is under control – which is not any time soon. Plus nothing left to do for central banks as money printing and zero interest rates are already deployed and any further move will rather be contra-productive even for the biggest morons. The biggest problem once your ammunition is used but the problems not solved and an external shock joins the mix you are really screwed – thats what Bernanke and Obama did and Japan for the last 20 years plus all the global financial robbery establishment of banksters. People were to reluctant not protesting against their corrupt and incompetent governments which was a grave-wrong mistake as they are now hijacked by the to big to fail game.
The overboıught sentiment starts to come down a bit but far from a capitulation or oversold market yet – we still have plenty to go as the Full Moon tomorrow wll rather increase volatility short term. Below as one example the Rydex sentiment indicator which is representative for many others right now.
|Date||NAV Adjusted N/U Ratio|