Buckle up and brace yourself. We have or are experiencing the tremendous downside risk of owning securities or other finacial instrument. Downside risk is in contrast to upside potential. We can safely say we have more downside risk potential. However, lets disregard the entire concept of longs and shorts. The markets are based upon a nations GDP, and when the markets exceed the value of GDP you will experience downside risk potential. We have printed so much money that the currency supply is muiltiple times greater then our GDP. The extension of credit is the savior as well as the achilles heel of Capitalism When consumers and businesses lose the ability to repay their credit debt the first pillar of Capitalism falls.
Americans today owe more money than ever before. The fact that 'interest never sleeps' means that the situation will continue to worsen unless steps are taken at the individual and corporate level to reduce or eliminate debt.. and using credit without the intent or ability to pay is theft.
I see we stopped at 1782 on the s@p............I said 1775 is the magic number....anything below that you are going to have a tremendous opportunity to make alot of money. Why get one acorn when you can get the entire forest. I said hold your powder and keep it dry. As for myself, it does not make a difference to me if I burn my bridges behind me.....I never retreat.........Keep your eye on the ball
Complex and technical algorithms have lead me to believe the DOW can and will retrace itself to 7500 keep that in mind. Now we could hit 675 on the s@p and 1437 on the Nasdaq. There are those on this message board that still sit out on the porch, flapping their gums. Disregard them. There are other technical things that are occuring in the market and I am not going to get into right now.
The market forces were at play when VLO pre released and in after hours trading the stock went to $53 then dropped to $48. Ask yourself how did that happen and how could it happen. I gave you some clues in some of my prior posts. I have to go now, I do believe you can attract good and bad into yourself. I guess they call that........Karma...........
ipd - beyond the technicals, the Fed has two choices in 2014: crash the assets or collapse the currency. They are not going to collapse the currency - even to appease governments in foreign countries where riots continue breaking out: Argentina, Turkey, the Ukraine, Egypt and other places. The bankers and LCMs are brutal in that respect - they have spilled blood in foreign capitals for 100 years to prop up the dollars. Liquidity in these foreign markets will tighten significantly - already in Russia and China which is highly troubling - and goods and services from EU and US will become highly inflationary for them. None of this is good for the stock market in 2014.