I would add the number of trades to this equation: e = sqrt(trades) * m / s since (s / sqrt(trades)) is known as the "standard error", the original equation can be rewritten as: e = m / standardError This may also be recognized by some as Van Tharp's "System Quality Number".
Much of the selling may be inter-market related. There are probably institutions that are getting out ahead of any more mayhem: http://dealbook.nytimes.com/2011/07/28/debt-ceiling-debate-rattles-short-term-credit-markets/ This is beginning to have a similar feel to "redemptions" (euphemism for run-on-the-bank) of old...
Ok. So your premise is that because those Democrats went back on their word 30 years ago, that there is no way to make law so that those lessons learned cannot be amended into a bill today? Man, don't make a mistake in Mavericks house, or you will pay forever! If that is the way we looked forward, by looking backward, we would never have become the nation we have become, and we would have never forgiven Germany for TWO WORLD WARS or the countless other mistakes that have been made in world history. âSpending cuts are the same thing as a tax increase.â - Tim Geithner Hmmmm, while I don't disagree in spirit with what you are saying, I think it terribly terribly oversimplifies the problem. Let me think about the best way to put it, but basically you are saying that corporations get wealthier because the effect that inflation has on their investments. That is just plain wrong. What?
Nitro. The last 30 years? Try the last 3k years. LOL. And it's not just democrats. Republicans do the same thing. Governments over spend. That is just a fact of life. You can't regulate that anymore then you can drugs or prostitution. Man's shortcomings are imbedded in everything we are. All we can do is remove the temptation. Let government spend all they want with what "we give them". I'm saying wealthy individuals own assets. Stocks, real estate, art, intellectual property, etc. These things are inflated over time. The poor benefit very little from this. The rich benefit a lot. Steve Jobs "earns" exactly $1 a year in salary working for AAPL. He will pay no federal income tax on that. But if you like, we can take the full dollar from him. Where his "real" money is made is on his stock. And if he doesn't sell it, we can't tax it!
since the thread went off track, may i suggest the classic work relevant to the current discussion: Preemptive Nationalization To Save US - The Shortie Solution http://www.elitetrader.com/vb/showthread.php?s=&threadid=202171
Stopped out at SPX 1259. Looking to get long the entire range of 1242 to 1250. If this loses 1242, I don't know that I could pull the trigger unless we crossed back above from below, above 1242, or God forbid, went to 1172. I don't see any major support between 1242 and 1172. Needless to say, I am a bit shell shocked.