Triskaidekaphobia day! You have to ask yourself this one question, do you feel lucky? Well, do ya, punk? (or this one)
Bears could use a little luck these days, and they may be about to get some sooner than later. In Last Time We Checked, "Hope" Still Isn't A Strategy we get, "Maybe markets have 'learned' that lesson and view all these potential stomach-churning headlines as annoyances, rather than existential crises-in-waiting." which to me is another way of saying as long as there is a BSB put out there no one gives a flip.
Reality, schmeality - I don't give a rat's ass what the smartest and brightest economists in the world try to feed me, this things going to implode and there is no bed of roses at the end of this path. With over $125 trillion in unfunded liabilities and a $200 Trillion fiscal gap (and with a mysteriously stuck debt number) while running trillion dollar deficits to keep things simply running - Let them spew all the hope and change they want, snake oil salesman is all they are.
Time, that's all they are buying right now. It is a tough pill to swallow. I get it. It can't happen here. Well, it will. I promise. When is the only question. We're close.
The CBOE busted again this morning. (DOH!) The decade long comedy of errors, corruption and unregulated markets is just about to come back and haunt us. Syria is the beginning of the end game scenario. Sad to say that war has to be their last out, but it is. It has always been. It was and will be inevitable barring some sort of miracle. Serious inflation is coming and we don't have any money left. That is a really bad combination.
Funny that Hank Paulson would say Financial crisis was a 100 year storm. Now this post is a total bunch of BS spewed by the former treasury secretary. Remember he was the firs one to blackmail us all with TARP and get us started on this path to complete and utter destruction. I think the 100 year storm was a culmination of enduring 100 years of Fed policies of rape and pillage.
As for the markets -
Daily SPX - Indicators look a bit tired as the wrestling match with gap resistance at 1685 and the May top continues. This is the point we all have to start honestly looking at things and saying, "Is this it?" I am, finally. From here, STB is now officially on a top hunt.
Minis - As we've been noting all week, the negative divergences from the 4hr chart down were getting pretty severe. That with the 1687 resistance may have been a bit much as blue channel support has given way. I still contend the market has no larger form (although near term is has shown some sort of discipline).
More to come below. Thanks for another great week on the blog.
Enjoy the weekend.
GL and GB!