Santa came early and often in 2009, handing out billions of dollars left and right to bankers all across the nation. Yes, this is the kind of action that makes one quit being an engineer and getting an MBA! It’s not every profession that the more you F up, the higher you can pay yourself. Tag on to that the fact that every mistake you make becomes someone else’s problem (the totally innocent that had nothing to do with it), and you have a job that requires no brains or ethics to execute. Grats bankers, for continuously be able to suck on the tit of government (or is it Uncle Sam’s pecker?) […]

Oh, this is such an easy call for the few that have a vision and an understanding of the human psyche. Let me start off by saying that it is not a consolidation (although that is what it looks like). The market is trading at too low of a volume for it to be a true consolidation. It’s almost like it is frozen, too afraid to buy high but too greedy to miss another rally. So it’s a top right? NOPE, not saying it is a top either, there is not enough volume signifying a top. So what is it? Simple, the market is waiting to see what (if any) monetary policies OR/AND fiscal policies will take hold. Feds increase rates and reduce M1, market will sell off faster than a China 5 dollar sucky sucky hooker. Government puts a muzzle on spending and tries to be fiscally responsible, expect a falling market. If both happen, expect a collapsing market! The truth is, the market is overbought (it had a great 9 month best ever record breaking bull rally). The number of things that can go wrong is now 100 fold times the number of things that can go right. The exact opposite was true in March, everything that could of went wrong already had and there was nothing left to go wrong after the mark to market changes. If this is not a strong sell signal, I do not know what is. […]

Here we go again. We are going to have to here bullish Cramer boosting about how great he is and how he called this perfectly. Let’s start off reminding people that in 2006 Cramer was predicting the market would be trading above 20,000 by 2010. His claim was based on a book that predicted sky high numbers for the DOW. Even during the trip down from 14,000 to 11,000 something Cramer stayed bullish on the market. It was only crystal clear to him that the market was going to crash after he realized that the CMO ponze scheme had come unglued. Sure, there is a good chance that the market will head higher until the Fed changes its easy money policy. The banks can basically borrow at 0% and push equity higher. Unfortunately for the people, this means runaway inflation in later years. Add to that the fact that the only reason the economy has no collapsed is because the mortgage fraudulent loans have been slowly transferred to the Fed balance sheet (which no one can audit). We have reached the economic “era of fraudulence”. […]

A holiday week with low volume will always catch traders off guard. Yes, I can see it now, everyone dreaming about Santa, what presents they will be getting and how big their end of the year banker bonuses will be this year. But not all is well in Wall Street land. Many key technical levels are being tested to the down side. If we see a break, many stop loss/sell limits /shorts will be putting a lot of pressure to the down side. […]