Market futures are off half percent as we walk into the first full day of the last week of 2012, and silver is off a smidge. I think five percent of the market will evaporate as funds and large investors dump in the wake of DC gridlock on taxes for 2013. The rule of "take half" off the table is going to invoke itself, and I think perversely, even next week unless the don't worry be happy juice drunk NY's eve still finds investors drunk throughout the week. That's because somebody got the thought process that, if worked next year, all could claim a tax "cut" from a hike already in place. Apparently lawflakers need to be able to show, months from now during elections next November, they were for tax reductions instead of tax hikes, and hope nobody does the math. Considering the intelligence of the American investor, retail or professional, they may have something going there. Nobody made a dime underestimating the stupidity of the investing public, which has mistaken the disappearing value of the dollar for "growth" for nearly half century.
Home related marks this morning, and claims the end of week will guide the macro's but I don't see how that matters as long as the Congress and the seat of power all have nothing but chitstains to show us. Time will tell.
It's 1 AM Pacific Coast time. Do you know where your investments are?
Ah!!! The Obama Messiah returns on a redeye EARLY to DC which he and the criminals in the Congress should never have left, to "save the day" with decisions about the fecal cliff, all doable according to the great unwashed, by a few keystrokes on an Ipad. Weeeeeeeeeeeeeee!!!!!!!!!!!!!!!!!!!!!
In the wee hours, the market turns from minus 1/2% to plus 1/4%.
Welcome to the mother of all headfakes, where, see? The PRESIDENT is returning to the scene of the crimes to fix everything! That's about 60-180 seconds of hope a dope on the charts, but, assuming everybody under 35 copied the same history and poly sci term papers off the internet and didn't even bother to read them, it makes sense where knowledge how government works is zilch. Or in this case, how government doesn't work, a dead sea scroll as indecipherable as paper dollars are depleted. And Japan gives us a lesson again, that to take the buying power out of your currency gives you the appearance of competitiveness, and the yen falls, and the dollar soars against it. The race is on to turn our dollars into three day sushi, and Bennies buying bonds with printed money to be fair, was the first salvo.
Willst you be buying or selling? Even silver is up a sliver. Even Herpelife, always suspect as an AVON like Ponzi scheme, rightly or wrongly, is up on the news its biggest investor had his thumb on the roulette wheel, selling short or buying puts. Notice nobody is citing whether his investment was credible, they only site his opposite positioning. The powers that be are gonna git 'em, that seems to be enough for now.
In the meantime, the headlines scream "your mortgage deduction will disappear" you're going to have to pay tax on the $4000 a year your employer dumps into your health insurance, and under Oblamer, that will be just about everyone. "your second home you will lose that mortgage deduction", the exact opposite of all the stimulus that has brought us to date back to 7.7% unemployment from just over 10%. Yes we're rationing the blood supply right in the middle of a transfusion, and yes, we've done this before, circa 1935, and pulled the entire country back into Depression.
My timing is once again, impeckerable. The market is getting that ohshitfeeling and beginning to swoon. Looks like if the Messiah attempts a water fording excursion, he'll drown in a mess of tea again. Here we go off the cliff.
Swoon. That means feint for the 40's hipster challenged.