Rangebound for a month, resolution soon

We have been rangebound for nearly a month.  I expect a resolution by the end of this week/early next week.  Whether Santa Clause shows up or not will most likely be determined by the Euro.  If the Euro/USD cross breaks 1.31, I expect SWHTF.
Breaches of 1292 to the upside and 1226 to the downside are easy lines in the sand.  Both have merit, but I would expect the Santa Clause rally to not start before an intermediate pullback........and the surprise may be that he doesn't show up this year.

As far as the full meltdown scenario goes, I will stay silent until we get back under 1100.  Current European news and spreading civil unrest may back my claims.  Unemployment near 18% and food stamp use near 20% would not normally point to "green shoots."  Unfortunately for me, the time factor and the Federal Reserve/IMF tricks are quite difficult to predict. 

Ruck is getting cute again. Another top must be close.

The Santa Clause rally is showing up two months early this year.  I wasn't expecting to be at these levels until the end of November.  Earnings are expected to hit record levels this quarter.  Oddly they will be doing so during a global credit meltdown.

My current target on the upside is the 200 day moving average, or around 1270.  This coincides with around 12,000 on the DOW.  I have plotted how this move might look over the next two months, minus global events truncating it early.

I believe 1220 today was an excellent short location.  I believe 1240 will be a great short in about 2 weeks, and 1270 mid November would be a gift.  This move should definitely be the last hoo-rah.

Last Chance Gulch (Economic Meltdown Incoming???)

Last chance gulch at S&P 1120.  The Euro just got flushed down the toilet and copper got absolutely hammered.  Bonds and Treasuries still disagree with equities and things are about to get very interesting globally.

I can't believe the occupy wall street movement is still going on.  I guess you can't keep our youth unemployed as corporate profits rise to all time highs.  The percentage of disparity between the rich and the poor, before a revolution starts, would be interesting to guess at.

The real question people are wondering is if Greece will default this week.  It may be time.

Props to Nick Wilson for his NFLX call

Props Nick.  Look at the NFLX slaughter fest.  Good call.  Crazy to think it isn't done.  :/

And to think this is just the first of many.  Wait until Apple turns everyone's faces.  Even I will have a hard time believing it's correction when it happens

I think we see more follow through to the upside this next week.  The only thing that could convince me otherwise is a breach of 1140 to the downside.  I have no clue how someone could hold long on stocks, through a weekend, in this global climate.  cRaZy

In times of universal deceit.....

In times of universal deceit, telling the truth becomes a revolutionary act.--George Orwell


Bouncing around 1100 is nothing more than a flip of the coin this week.  We either crush it drastically or we bounce for another week+ of delay.  Nothing will change the endgame though.  We are heading to 1040.  Monday should quickly define our terms.

Watch for the Dollar to rally this week, gold to continue being crazy, and Europe on continuation to implode.

Last Chance Gulch (S&P 1150 needs to hold here)

The S&P futures will have to do an awful lot of work before 6:30am, if they want to hold the 1150 support line.  I believe the liquidity in the private credit market just ceased, thanks to the Bernank.  The news is rolling across Europe right now and their markets aren't looking too happy.  This could pick up momentum before morning.
I have the next S&P support line at 1040.

Cash will be king!!  Look at that dollar surge.  The US Dollar is probably the safest place for your holdings.  Imagine investing by doing nothing?  Easy Peasy.  Imagine how strong the US Dollar will become if Government is silly enough to confisicate Gold again like they did in 1933.  OMG!!

The bright side:  Gas might stay under $4 gallon if the dollar continues to strengthen and our economy finally allows deflation to run its course.

Peter Schiff's CONgressional testimony

A must watch.  Peter Schiff's testimony in CONgress.  I have read a couple of his books and he has been spot on.

http://www.zerohedge.com/news/peter-schiff-obamanomics-there-are-not-enough-open-minds-capitol-keep-ship-sinking#comments