Do not ignore today's across the board bloodbath in commodities.
Even the softs have now joined the carnage. This is looking like a bit more than a technical correction. Deflationary pressures apparently remain very much alive despite trillions in money printing. Money and credit remain very tight, and if you ask anyone who owns a business, they would have verified that fact some time ago. The deflationary forces are about to hit equities, the last bastion of any supposed inflation. I'm not sure you want to own a hype stock like ZNGA with no earnings in this kind of environment. Yes, I'm down slightly in a core position of physical silver. We have a very interesting fireworks show in the making. This will be an exciting week.
Doesn't ZNGA entirely rely on discretionary spending? No more fun and games.
Only if you have the disposable cash. The majority must rest content playing free games of Farmville in the trailer park. Even the absolute bare essentials, like a pack a day cigarette habit, runs about $200- per month; booze and cheap women are not included.
No, I am sensing a very high degree of systemic market risk right at this moment, and this will bring ZNGA to the cleaners. A couple of hundred DOW points? No, try a couple of thousand.
The commodities market is sending a strong signal along with Japan's panic attempt to reflate.