tuesday brainstorming -part 1
1. Markets have defended the lows around the expected levels and are now hunting the shorts again who started to price in the apocalypse which will not happen right now as they have still some ways to deal with minor kick down the can strategies and a default of Greece is not the end of the world as Obama the rookie snake oil salesman told the world.
With IBM yesterday and Apple today we get 2 icon names with outstanding results after Google which drives the NDX into the outperform mode coming closer to the double top level around 2420 once again tomorrow if Apple delivers and MSFT in 2 days. Which is very likely as we will enter soon around the 21st the Mercury in heliocentric time frame for 10 days which is a benign factor. Especially if the debt ceiling is raised in that days although it will rather be a last minute deal as both sides play their poker game with eyes on elections rather than on the benefit of the people. Short term I expect more upside with the 1330 and 2400 levels as a minimum for now.
The zigzag of the market reflects the overall situation on one hand we have incredible risks which are basically not discounted at all due to the market manipulation and cheap money printing efforts.Which is what makes this a top building process as in 2007, the same happened back then and we had a final leg up before the whole thing collapsed. Even highly experienced and sophisticated investors refrain with one extreme being Soros sitting on 75% cash.