Much is being made of the "Three Year High" that the markets achieved today.
What to do now? Chase the new high, or sell it?
Unless and until, it is shown that there is "something different" happening in the economy?
I SAY SELL THE NEW HIGH!
AFTER ALL, HIGHS ARE FOR SELLING. LOWS ARE FOR BUYING.
THOSE WHO BOUGHT THE LOWS IN MAY--WHEN THE DISMAL MARKET WAS HAVING 800+ NEW LOWS EVERY DAY---ARE THE ONES SITTING ON NICE GAINS TODAY.
Frankly I won't even consider dabbling outside of Gold and Oil: UNLESS the market is producing 500 to 800 new daily lows.
Additionally, there is no hint that anything "good" is happening to the US economy or its markets.
To wit: the dollar, interest rates, deficits, the war costs, medicare and prescription drugs, Hanky Panky by Fannie and Freddie, and the list goes on.
The only real "positive" is that THE STOCK MARKET IS NOW THE "OFFICIAL RETIREMENT SCHEME" FOR AMERICANS BY PROCLAMATION OF THE US KONGRESS!
THE STOCK MARKET IS NO LONGER MERELY THE PLAY THING OF THE IDLE RICH, OR MIDDLE CLASS PLUNGERS.
FOR BETTER OR WORSE: THE STOCK MARKET IS "THE OFFICIAL RETIREMENT SYSTEM" FOR THE AMERICAN WORKER; VIA THE 401k; and perhaps eventually with the new Bush Social Security scheme.
THIS ALAS, WAS PROCLAIMED BY THE RICH, THROUGH THEIR BOUGHT AND PAID FOR REPRESENTIVES IN KONGRESS;
MY HUNCH IS THAT ORDINARY FOLKS HAD VERY LITTLE TO SAY ABOUT IT.
SO IN TRUTH, AMERICAN SOCIETY WILL RISE OR FALL BASED ON THE VALIDITY OF OUR OFFICIAL CONVENTIONAL WISDOM ABOUT THE "BENEFITS OF FINANCIAL MARKET SPECULATION" TO THE WORKING CLASSES!
THAT'S THE "BIG BIG PICTURE" HERE.......
IF MARKET SPECULATION BY THE WORKING CLASS WORKS? THEN, I'M WRONG, AND I OWE EVERYONE A BIG APOLOGY!
IF SPECULATON BY THE WORKING CLASSES FAILS? THEN I'M RIGHT, AND WE ARE IN FOR SOME EXTREMELY DIFFICULT TIMES AHEAD.
IN SHORT; IN AMERICA TODAY EVERYTHING IS TIED TO MARKET SPECULATION; AND ITS SUPPOSED "AMAZING" BENEFITS TO THE AMERICAN ECONOMY AND SOCIETY AS A WHOLE.
STILL, WITH EVERYTHING GOING "SO WRONG" IN THE "REAL WORLD" HOW CAN ANYTHING TURN OUT RIGHT FOR THE FINANCIAL WORLD?
NEVERMIND THE WELL KNOWN DISMAL HISTORY OF FINANCIAL SPECUALTION IN GENERAL.
NET-NET
TODAY'S NEW HIGHS MIGHT GIVE YOU A CHANCE TO "UNLOAD" SOME OF THOSE "SURE THINGS" THAT SUDDENLY TURNED INTO "LONG TERM INVESTMENTS" THIS SPRING!
HOW CAN YOU GO WRONG SELLING NEW HIGHS, AND BUYING ONLY NEW LOWS?
WELL,.....THERE IS THE CAPITAL GAINS PROBLEM I SUPPOSE.......WHY TAKE PROFITS IN THE LAST DAYS OF THE TAX YEAR?
Hmmmm......maybe that's the real reason there was so few sellers today!
Ya think?
