the news outlets keep mentioning "Operation Twist" to be possibly announced next week where Fed may swap of short-term Treasury bonds for long-term ones. There is also speculation that Fed may do something more drastic. Blah, blah, blah... I don't even want to pretend to understand this rate business. But it appears that the plan is to keep doing what they were doing. Of course, we know that Fed's approach has failed. SPY/GLD is at March 2009 level! My naive understanding is that Fed is out of bullets by now. I mean "real bullets" that may make a difference. Of course they can always fire blanks but will anybody care?
September 17, 7:48 AM BERLIN â European officials ended a two-day financial summit Saturday with no new concrete plans to help support euro-area countries that are having difficulty repaying their debts, as deep divisions remained about the best course for the coming weeks and months. On Saturday, the officials discussed but failed to agree on a proposal to tax financial transactions. Greece is likely to run out of cash by mid-October if it does not receive billions of euros of bailout money, potentially setting off a financial contagion that could hop from bank to bank and country to country. what a mess! the idiots keep bickering as the crisis unfolds. this is not a good sign.
Note that the article is vague on her timeframe, only the targets, which are based on standard fibonacci numbers. Perhaps Bartels is right, and the market will test those levels, but when? September has two weeks of trading left, and Bartels even cites that October "traditionally marks important market bottoms", so if her targets are correct, then we should be crashing within the next few weeks and testing the fibs before reaching a bottom. Who knows if Goldman, Cohen and/or Bartels is correct. The direction is relative to one's timeframe and ability to hold any potential drawdown until either a target or stop is met.
<iframe width="420" height="315" src="http://www.youtube.com/embed/ckzMNbmy3tk?rel=0" frameborder="0" allowfullscreen></iframe> Prechter has spotted the dire head and shoulder pattern. The dude probably predicted one crash per quarter since 1987. I am guessing that he may be using a totally unsound method. This does not mean that can't be correct this time
As mentioned, S&P500 big picture remains bearish and despite market intervention the March 2009 lows will eventually be breached. FX medium to long term outlook has not changed ~ Euro bearish and USD bullish. As warned about for some time... bring on the overdue USD rally. LONG TERM S&P500 CHART AT MY BLOG
Geesus. Someone sure is putting up a fight to prop this turd up. CB using the equity market as mechanism of economic stability? What the heck is going on here. The balloon is deflating again but it just won't go down. I, I, I, I I j j j j j j ust w w w w wanna drop.