Did you know there will be a New moon and total eclipse of sun on November 13-14, 2012. How will this effect things? Funny it should coincide with Congress comes back Tuesday to confront "fiscal cliff". Changes? Don't count on them, but we can always hope for some sort of celestial intervention.
Well, with the fireworks in congress about to begin over the fiscal gorge I suspect the markets will be eagerly anticipating more stimulus. Why would the story change when they have no other options? We all know, as Czar O has decreed, we will print more. How else do you fund a socialist agenda that needs to feed and clothe its ever expanding voting base?
The big question is how much fight is left in the GOP? Funny to think that we the sheeple have to rely on one crooked side of the government over the other, but that is the case. I'm positive at the 11th hour as always some sort of agreement will be made. It will combine yet another increase in the debt ceiling and some sort of spending cuts spread out over the next century starting in 2070 or later. Bottom line, all the bullshit you are about to witness will mean nothing in the long run and more debt in the short run. Remember the Super Congress? LOL, expect more of the SSDD.
With Europe Gives Greece 2 More Years to Reach Deficit Targets I would expect the same with congress giving the Czar's administration another year as well. If a modern economic theory textbook was printed today it would be the shortest book in history and include only one word, print.
With the debt ceiling increase that will guarantee one thing, dollar devaluation. If one goes up the other must come down. Your fiat dollars are about to be come even more worthless than they already are. That was a joke, paper money backed by a promise is just what it is. The world is catching on and the reserve currency status weakens with every round trip to the printing press. The thought that everyone will run to the dollar for safety is now a myth. You need to be getting out of dollars.
As noted here consistently, the bond vigilantes are always the smartest traders on the block. Maybe you should read, Treasuries See U.S. Falling Over Cliff as Yields Converge. This post is half hogwash and you have to read the implications not the reality (see thru the crap they are spewing). Honestly, I don't see anything priced in and think rates will start to rise sooner than later due to some sort of shock to the system. The Fed has pushed the 10 year to the limit and it may have topped/bottomed at this time. They are out of wiggle room here.
SPX Daily - Are the C and E tops a LS and a Head with a neckline near 1265? It is quite possible A is a LS and E is an other head for an even larger and more dramatic HnS setup. The both stretch out too far for a RS to form, but they are something we need to keep in mind. I've been barking about 1374 for years now and here price is holding this critical support point. The markets reaction to how congress handles the fiscal gorge situation will be critical. Daily and 60m indicators blew thru a potential divergence situation and weakened again. They are low, but can go lower. Tough call here, major blue wedge support is gone but the 200dma has price there with 1374 and indicators nearing the lower end. Can price make the HnS target near 1330 and the 38% retracement? That is what I would like to see before a bonce.
Have a good one.
GL and GB!