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Tuesday, February 24, 2009

Equities Sitting on Support

Equities are sitting on the November 2008 panic lows and are extremely oversold. This is major psychological support. Expect some kind of spirited attempt to hold the line here. A counter trend bounce is probable.

NOTE: The really scary rinses tend to happen from deeply oversold levels. So it really is do or die time.

5 comments:

Srdan said...

ben, i agree with you about deflationary pressures in short term and gold. but, although the fed hasn't monetized the public debt yet, they have definitely monetized a portion of the private debt. i am not sure about the figures but there's got to be a tipping point between deflationary pressures and massive inflation, with the room for a balance practically nonexistent.

Pizza Dude said...

So how does this new " mark to market" accounting screw equities in the near future?

Anonymous said...

Ben:
lets face it..

how long can the markets pretend?

its begging for a final rinse...

The bottom line is that the gov't WANTS the market to crash...

They want this market to crash...so they can pick through the rubble, and pick up the good bits at low prices.

Once they own the stragegic companies outright (vs pork projects), this will give confidence to our debt owners.

"Hey china..you can't trust Citibank...but once we get in the drivers seat, we will make sure the US govt takes care of you....afterall, if we screw your govt, you can screw the US Govt..and we dont want that to happen".

Dave Narby said...

@ Anon

The gov't, AS USUAL, has no f******g clue.

We are nowhere near done deflating.

Robertm73 said...

What do you think about shorting the yen?