Sunday, March 20, 2011

S&P500 points broadly lower within the current channel...

I have been expecting the forces that be to attempt to convey some stability in the Japan situation regardless of the underlying facts. This weekend we did get the positive reassurances from the fearless and totally crediblity lacking officials. On friday, the Russell 2000 was very strong relative to the other major markets and that is usually a leading indictor. Additionlly, the general backmail attempts going on around the middle east to quell revolutionary civilians and predicatable western support for the oil interests (surprise, surprise) for another week or two could setup a confidence attempt in the the charts seem to suggest.

I crtainly DO hope that there is improvement and stability to the Japan siutation, though I still feel like it is inappropriate to think or plan for anything but more misinformation and distortion from officials around the world. Given the looks of the larger picture for the markets around the world from Bombay to the Dax to the S&P500, there is considerable risk. Generally, the world is making a mad dash for cash because you can't buy food and supplies with silver or stocks at the local purveyor just yet. Banks don't want to take alternate assets as payment stress in the financial system and lack of new credit from banks are creating a demand and need for cash. If cash remains in short supply in the bigger picture then assets will remain under pressure.
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