GOLD < $1200 (The Panic TRADE)
S&P500 > 1150 (The Asset TRADE)
EURO > 1,2850 (The Future of Europe TRADE)
STATUS on The Panic TRADE:
Mr. Market has just taken out the previous all time high for GOLD las night !! People are desparately looking for safehavens!! (pls remember our comment on the energy field !!)
Status: EUROLooks like we have failed!! (unless we turn quickly)
Commentary on the Monday's miracle day in the Markets :
Finally, here is a piece of market information that we got through Bianco Research this morning. “According to Bespoke Investment, today will be the third largest opening in S&P 500’s history. The two larger opens share a lot in common with today: [1] Friday, September 19, 2008 — the night before the TARP was leaked to the market (starting with Gasparino on CNBC). Lehman had failed five days earlier; [2] Monday, October 13, 2008 — This was the day all the heads of the 9 largest banks were called into the Treasury and forced to take TARP money as a capital injection ($125 billion in total).” Today’s open was the announcement of “Europe’s TARP,” the equivalent of “America’s Tarp.” As Bianco notes, and the previous two dates should make clear, the prior two instances led to a sharp decline for the next six months, as Primary wave 1 (circle) carried prices lower until March 2009. In fact, the spectacular gains registered on September 19, 2008 were taken back one trading day later. The gains of October 13 were more sustained; lasting all of two days. This latter date is interesting in that the NYSE advance/decline ratio closed that day at a whopping positive 18:1, exactly the same a/d ratio that today’s rally delivered, as shown on the above chart. Regardless of the exact near-term timing, our interpretation of the wave structure indicates that once the current bounce is exhausted, a significant market decline will be at hand.
found here http://evilspeculator.com/?p=16132
BOTTOM LINE: expext volatility !!
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