The economy is so weak. Housing starts are just starting to show a decline, leading to a more incidious drop. Rooted by severely UNDERSTATED unemployment. Folks able to spend are embarrassed and also putting of purchases as DEFLATION is continuing. Why buy now when you can wait and buy for less later? Foreclosures not getting any better, possibly, will get a bit worse again. If you believe Merideth Whitney, folks are not paying their mortgages and using that money to live, propping up consumer spending and putting off another round of Bank foreclosures. Commercial Real Estate hasn't even reached the tipping point for the banks, and it will. Taxes?????What do you think? The Healthcare problem hasn't begun yet. The oil mess!!!! There are 14 utilities along the Gulf Coast dependent on CLEAN water for cooling. IF they get any oil in their water, they may be forced to close, and suspend production. Blackouts may become rampant.. No joke. Afghanistan.....Gen McCrystal can't stand the way they're keeping him on a leash, and that war is dooomed!!!!Whether yur a Dem or Repub.....we shouldn't be in Afghanistan. It's a corrupt regime, no infrustructure and all we will do is cause our troops to get killed. Iran is pushing because they have no fear of our administration. Meanwhile, 14 Naval ships traversed thru the Suez Canal and are poised for some sort of action. Peter Orszag quit as he is at odds over the spending. Raham will be gone by November. PIIGS ? We still aren't done with that. The Fed has run out of bullets!!!! To quote El Arian, we used our "spare tire already". Things are going to turn ugly and there are so many potential catalysts it's scary.
cmeg, these are all good reasons for EDZ to go up. Unfortunately, the market could continue its upward grind, in spite of all these things. It is more about the DOLLAR and what those in power <in control of the market> want, than it is news events.
The market "could" continue to drind out gains. Sideways , but gains. Until the power of the people takes over. If Fund outflows continue, and people get fed up, and afraid, and uncertainty takes over, panic ensues. When the flash crash occurred you got a taste of what can happen. Technically, that LOW was broken. It WILL happen .....just a matter of time. There is far, far more downside risk than upside potential. But I don't disagree. ANything can happen. I was just laying out fundamental reasons to be betting on the bear side......or be in cash. Unless someone is an astute trader. A pro. This is NOT a place to try to learn to trade on the long side. Just my op. GL