Quote from Spectre2007:
The risk aversion window is still wide open, given all that is going on in the real world, this phase of the market will continue to manifest weakness, there is immense overhead supply looking to exit before the shit really hits the fan, do you honestly think the market makers will let people exit without maximal pain. Maximal pain is when sp500 breaks monthly lows in the 700-800 range causing anyone who is long to sell in mass.
What are the factors weighing on the market?
1) immense transfer of wealth outside of this country to resource producing nations.
2) taxation by energy inflation, and debasement of the currency.
3) what are the solutions to remain even remotely functioning, to continue to increase the money supply in a massive fashion, debasing the dollar even more.
this storm is just getting started, everytime you think there is reprieve, the storm comes back even with more force.
Before its all over, bond yields will touch below 4% on the 30 year.
USD/JPY will be sub 100, and stay there.
Equities will break 1000 on the SPX. Bear markets meet expectation on the sell side more then on the buy side. Bull markets surpass targets on the upside, and rarely meet retracement points.
