Interesting day today as the ramp came to an abrupt end at the prescribed 1220 resistance. Will SPX revert to the bottom end of the range now or are the bears in for more punishment? See the chart below for my answer.
So, what finally got the markets to stop their advance? What is it all about these days as discussed here many times - liquidity - Market Slumps After European Banks Admit They Can't/Won't Raise Capital; Will Proceed With Asset Liquidations Instead | ZeroHedge "The reason: according to the FT (and certainly take this with a salt shaker if previous experience is any indication) is that European banks have balked at the prospect of recapitalizing at current levels ("Why should we raise capital at these [depressed share price] levels?” said one eurozone bank boss."
Add to that the serious issue, "Now, whether they won't, or, as we (ZH) have claimed since the first day we heard of the ludicrous "recap" rumors, they can't, simply because absent a massively dilutive rights offering, nobody in their right mind would lend to an industry which continues to be locked out of short-term funding markets for the 4th month in a row, is largely irrelevant. As a result no new money can come in: a key prerequisite to any European recapitalization plans." I'm quite surprised they did not let this go after the close and that the sell off was not even greater on the announcement.
Thanks to Rich for this link (I never go to the CNBS site) - Rigged? Some read this site and just shake their heads at some of the stuff I spew every day. As I like to say, it is always wonderful to get confirmation from "experts" or more credible sources - "People are “waking up” to the fact that “the game appears to be rigged,” Joe Dear, CIO of California Public Employees’ Retirement System, told CNBC Tuesday." CalPERS CIO on Wall Street: 'The Game Appears Rigged' - CNBC
Well, looks like the great Harrisburg default is finally happening. After years of struggle "The City Council voted 4-3 to seek bankruptcy protection for Harrisburg, which has a debt burden five times its general-fund budget" Bloomberg Businessweek reported." Harrisburg, Pa., Votes to File for Bankruptcy - National Journal Staff - NationalJournal.com. For those interested in a chart of MUB - click HERE - the divergences are pretty nasty.
Let's beat up on the only current democratic candidate for president shall we, since I assume that by the end of this year he will either drop out or will have a challenger we may not have much time. Sad to think he'll take over my local (Carter) past president's "worst president ever" title. Darn!
From the "a picture tells 1.000 words (or thousands less supporters YoY)" file - this must see photo comparison from Obummer's visit to Pittsburgh in '08 versus '11. DRUDGE REPORT: OBAMA PITTSBURGH 2008 VS. 2011. For Hope to No hope should be the new slogan.
Speaking of no hope, why in this economy or before his "reelection" would "White House Chief of Staff Bill Daley said Tuesday he will leave his job after the 2012 election." Daley to leave White House after election - Washington Times. Seriously, he's a great guy, but... does not cut it for me. Rat's bailing ship may be more apt description.
This one stunned me - I thought Chicago was solidly enveloped under the veil of corruption - maybe not? Will this be the next "Birther Gate"? "Former Gov. Joe Kernan says a signature on a petition to place Barack Obama's name on Indiana's 2008 primary ballot isn't his, putting him among dozens of dubious signatures found in a newspaper's investigation." Ex-Indiana governor: That's not my signature on Obama petition - chicagotribune.com
From the "Let's start a war to get my chances of being reelected" file - "For now, Carney said the Obama administration is focusing on pressuring Iran through economic sanctions and diplomatic coalition-building -- though he said no options are off the table. But emerging details suggest a potential strategy shift in Tehran's quest for influence in the Middle East could require a new level of vigilance." Alleged Assassination Plot Seen As Sign Of Emboldened Iran, Shifting Strategy | Fox News. this should be taken seriously only because we have a desperate president that needs help getting reelected who apparently does not give a shit about what Congress says and may thrust us into a war ate any time.
I updated the Daily Target chart from this morning - take a gander and leave your thoughts below. STB did a nice job waiting out the top and finally called it withing 10m this afternoon if you missed it in the comments today. Now, I just hope that sticks. Remember I think SPX is now in the process of either completing the head with a drop to 1040 or it is forming the right shoulder of my larger HnS formation.
This one is for Rich and any others that may be interested - James Mullaney - Edgar Cayce & The Universe (Earth Changes, Astronomy, Prophecy) - YouTube. Coast to Coast interview from August that is just wonderful.
GL and GB.