Sunday, May 23, 2010

Summertime is Beach time and Diving in the Blue Ocean

What a week at the beach !, diving and cruising before it gets all polluted. Saw it coming years ago when the big Oil companies saturated the Gulf Coast with oil rigs and the politicians gave them the green light by accepting their bribes. Too late now.

On the markets:

The SPX will trade above 1200 again before Labor Day

If the devastating path that Obama has us on isn't changed soon, the U.S. will face the same debt problems as Socialist Europe, and being a debtor nation, who in the hell is going to buy our debt when there is little confidence that we can support it.

That is not a problem for China because they are not facing a sovereign debt collapse like Europe is now, and the U.S. will be in a few years under the status quo. China sees it coming and has been shortening its maturities on the U.S. treasuries that they hold, and Japan is now the primary holder of our U.S. long term debt. The initial reaction to the EU sovereign debt default is to buy the USD, Gold, Treasuries, all of which we see now, and we could also see the foreign capital seek temporary haven in U.S. equities. The EU bailout of the banks [although they say Greece] is expected to do no more than postpone for a few years the inevitable debt collapse in Greece, Portugal, Spain, and possibly Ireland.

The ES will climb up to 1121 - 1130 this week , that is the top of the May 10 Gap and the Hourly down trend line. By the way that 1051.25 Low on last Friday 5-21 was the low made on NFP ( Payrolls ) Day February 5th, before the N.Y. Open. The Day session Low that day for the ESH10 ( March ) was 1040.75.

Trade well and go to the beach before it is polluted. !

No comments:

Post a Comment