1. The complete and utter failure of the FED and their so called policy is now obviously at the open – when it comes to real economy and Mainstreet with consumer confidence close to the March 2009 low ( depression level) and still dropping house prices. Every drop in house prices is a severe blow for bank balance cheats as their real and potential losses are accumulating.
No Housing Bottom As Case-Shiller Declines For 4th Consecutive Month; Misses YoY Expectations
Consumer Confidence Plunges To 39.8 From 45.4 On Expectations Of A Bump; Lowest Since March 2009
On the other without the trillions pumped into banks the DOW would rather be around fair value 4000-5000 – steroid injections keep up artificial values but retail investors have become much smarter as they withdraw constantly money from stock markets. Therefor rather the wealth of Buffet and Gates keep being inflated.
2. The expected pullback took place today testing the 1220-30 SPX level but we will around Thursday latest go for new highs towards 1270+ the next week. For the next 48h some EU turmoil will keep markets a bit under pressure before even more short covering may be due as the last weeks Friday close proofed again that still some squeeze potential is ready. Apple still needs to hit the 420 once again which is one indicator for the top – therefor the NDX 100 will rise above the 2400 once again the next 2 weeks. A good Alpha play is still Nokia which will come with a N9 Mango version tomorrow which should sell quite well as people may be tired of the Black and White Iphone look, plus the new Mango seems to deserve some credit. More from an Android perspective as the updates on Android devices are very poor to say the least and my frustration with them might be a broader issue. Once a real alternative to Android exists MSFT may get traction as well.
Overall by mid November get / beready to short the markets again.