Exited short-term volatility trade @ 179.50 yesterday after 3:00 PM NYC time, as indicators rolled over. Because the buy was at 179.07, the trade was pretty much a wash. As I mentioned in my intermediate-term posting, the negatives in this market are increasing. The problems as i see them are: 1) the major global economies are on the verge of slipping into deflation; 2) international trade is collapsing; 3) Chinese shadow banking is collapsing; 4) the fear of capital controls in major economies is spooking markets as broke governments are beginning to advocate capital levies (vide: Mr. Obamas MyRA retirement savings grab). [As an aside: the US was at one time the jump-starter for the world economy. If worldwide commerce slowed to a dangerous level, we could pick up things dramatically by stimulating our economy - when we stimulated, everybody got drunk; when we tightened, everybody caught a cold. No longer. Our decade-plus war of all-against-all plus the thirty year planned destruction of our industrial base have turned us into something which we have never before been - a nation of whining, impecunious supplicants living upon the fading memories of a world increasingly beyond our abilities in which to be relevant. Now, all we can do is sit back - and hopefully - enjoy the ride!]
Posted on: Fri, 31 Jan 2014 15:34:57 +0000
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