One poster a few weeks ago was already expecting that the govt money would quietly fuel the financial sector with a background of "good" news and recovery and "not as bas as expected" qualifiers, as in a positive propaganda to re-inspire te crowd to buy back into the market.
I am still not convinced that whatever is going on is part of the "natural" market development. Although there are no ways to prove it, it remains fair to believe that this uplifting is only synthetic in hope to bridge back to a level of stability, which I believe would take a lot more than the trillions of dollars that has been shoveled into the vacuum.
Technically speaking, I see that FAZ rallied at exactly 61.8% from its prior low, leading me to believe that this is as much the market is probably willing to react from the declines of last week. This is hardly a discovery, or the continuation of one. It would take a lot more bullish participants to turn the market bullish.
For nw, everyone is looking at a daily chart ("the here and now glance" economic glance) with a fading ache from the recent "recession", as if that phenomenon was ephemeral and likely to turn if we ignore the underlying asset value issues that created that whole mess.
To this day, banks have not managed to rid their debts or "detoxify" their assets. But instead, the pain is deferred to consumers who drink the Kool Aid on the sidewalk hoping to get back into this often promised market bottom.
Today, the media announced that Buffett is betting on America by doubling down (If anyone knows that guy, betting is not a quality that describes him; doubling down on a market that has not produced any tested bottom is even more unlikely - but what do I know).
As an added "god news", media also reported that the real-estate market (the single most decisive financial product that will sway the economy of this country), was likely rebounding from its bottom. If anything, this is likely to generate a consumption trance in hopes to buffer yet another bottom, or to build a vehicle by which the toxic assets may be diluted (remember that one of the opponents to Obama administration's plan claimed that the Fed's solution shifted most of the risks back to the consumers, and away from the originators of that fiasco). So, how do you sell a problem to unaware by-passers on the sidewalk? Kool-Aid.
All IMHO.
- dalcindo
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