Tuesday, October 25, 2011


3:10 am (Hawaii) Been awhile since I stayed up for the opening bell and kept the TV on. I haven't examined FAS and FAZ in almost two days, I think, and it feels more like two years. The market leaps up. The market sinks down. Futures this morning, pre-opening bell, are slightly negative. No real huge news to either direction, just near-term skittishness about a possible delay to the Euro crisis solution. Blahblah.

FAS daily
The run to (near) 15 was almost inevitable. Let's face it - Geithner
didn't travel across Europe for a week to do sightseeing. 
Strings were pulled and everybody was on board
for the latest chapter of Fiat Dreamland.

FAS daily
When the EU announces that it will print fiat by the trillions,
14 will be a distant memory.

FAZ daily
Held support at 42 and is bouncing a bit this morning.

FAZ daily
Nothing much to feel bullish about here.
All that's preventing a crash through thin ice at 42
is the lack of a QE-ish announcement in Euroland.

It's hard to enter FAZ here. The deck is rigged, the dealer is cheating and people betting in a pair of deuces are somehow raking in big profits. People? Okay, let's just say they're under orders to stack the deck. Under orders to bet on crap. They're all the same and logic has nothing to do with the results.

The market could melt up through the rest of the year. Or we could see another huge rally get kneecapped with a couple of incredible flash crashes. I'm still all cash.

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