Just another day in the financial markets…
The G20 works feverishly to hold a summit that doesn’t disrupt world markets, while our elected “representatives” work feverishly to position themselves for a standoff that will.
The mainstream media provides detailed reports on a $4 billion pyramid scheme that’s been exposed, barely mentioning the $17 trillion one that has corrupted markets and could destroy the economy.
Credit rating agencies are fined billions for lying to investors, and threatened with annihilation if they dare tell the truth.
We ignore the long-term jobless so we can report 8% unemployment instead of 23%, and send out debit cards to 47 million hungry and impoverished Americans so the rest of us won’t have to witness unsettling bread lines.
And, the bankers who started it all continue to receive billions in bailouts and Cabinet posts.
The stock market couldn’t care less about any of this stuff – only that the Fed continues to pump $85 billion per month into the markets in order to “ease unemployment.” [Expect it to test the 1524.69 highs again today…you know the drill: intra-day longs.]
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I have to run out to chat with a bunch of middle school kids about the working world. Preparing for it has been a very illuminating experience.
I plan on holding short into the weekend, but will monitor the situation “from the field.” I should have a chance to post again before the close.
Here’s where we are right now:
UPDATE: 3:50 PM
RUT daily chart is essentially unchanged from Feb 5. RUT completed one Crab at 920.95 (purple), and is about to complete a second at 933.36 (white pattern) which will also be a tag of the channel top.
The Global Dow’s goose looks positively cooked. On Feb 1, GDOW came within 8 points of completing a very well-formed Gartley Pattern (white) and 4 points of completing a measured move (in red.)
And, just yesterday, the daily RSI broke down below the midline of a well-formed channel that dates back to the Mar 2012 .618 Fib tag.