part 2

2. Market confirmed the expected soft bias today and especially Apple is heading for the neckline at 326 which may hold initially. NDX and Composite both were not able to close the gaps which started the last correction of 10%. Lets see if they can at all as we are already in month 8 the time window is 7 weeks aprox. as the DOW and SPX willl make marginally( 2-3%) new highs. The Apple charts price pattern rather makes it less likely and Google looks vulnerable too and the weakest Tech stocks have been raised in their weighting Microsoft and Cisco.

3. Bill Gross is right about being short Treasuries as Bernanke has with the full support off Obama who has either no clue at all what economy is or is just a corrupt ignorant  snake oil salesman – America is on its way to official bankruptcy and a huge bond-crash is about to happen. I had written about this months back that the next big challenge for the system would be the mandatory bond market crashand with Chinese official language against USA turning much tougher we can be sure the timing is close and the charts look horrible indeed.


Ex-PBOC Official Wakes Up From The Acid Trip: “U.S. Treasury Market Is A Giant Ponzi Scheme”


After years of being the primary supplier of funding to the US credit-money shell game, one more ex-PBoC member wakes up from the “great normalization” acid trip, and in a Caixin editorial says what virtually everyone now understands all too well: the Treasury market is one “giant Ponzi scheme.” Oh, and it wasn’t obvious when China was the biggest holder of debt for years (until the Fed became the biggest monetizer of US Treasuries late in 2010)? Sounds like a rather serious case of buyers remorse is creeping into the buying mindset of America’s formerly primary enabler. The $64 trillion question now, as always, is whether China, whose holdings have been flat for a year will follow in Pimco’s footsteps and actually commence selling longer-dated paper. If so, and with QE3 now expected to end even if temporarily, the aftermath will not be what Congress wants to see.





~ by behindthematrix on April 11, 2011.

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