We continue to remain rangebound. This rising channel has morphed into a flat of one degree higher than originally expected. This could extend the time duration of this pattern by as much as two weeks, which means it should probably resolve by October 4th.
Rising channels are Bearish distribution patterns. It should be interesting to see if large corporations can distribute their shares to Joe Public the next two weeks, or if global affairs will help truncate the distribution of these shit sandwiches.
To keep it simple:
S&P sell if below 1180
S&P buy if above 1260 (you wont see me doing it, will cover though)
The US Dollar is finally showing strength. YAY!!! About time after a four year bottoming/consolidation pattern. The pattern on the USD's breakout looks legit and Bullish. The time on the Euro is ticking. I was originally telling people that the Euro would be gone in 5 years. At this point, I wouldnt be surprised to see it gone in less than 3.
This is where it gets very interesting, and possibly humorous. People talk about magically taxing the wealthy. Good luck getting at their cash. The minute a Bill is passed to tax millionaires, they will liquidate their assets across the board, pay their capital gains taxes, and put their money into stable assets that will be untouchable. What will be left is a cratered securities and commodities exchange. As taxes are increased you will see less people selling their assets and less people claiming their capital gains. A new tax plan is the end of the game for Baby Boomers. They win if they liquidate. And cash will be king.
....unless of course, the Fed finds another method to magically inflate this deflationary spiral of death. I think the Bernank has his back against the wall though.
