Futures are up as I suggested they would be near yesterday’s close. Right now the /ES is right around the 890 area which is a 23.6% retrace of the last two day decline.
A 38.2 would take it to 897, and the 50% is up at 902, a very likely destination.
McHugh seems convinced that the 666 low was the bottom of the large degree wave A down and that we just topped wave A up of an abc correction and are now heading down in wave b down with a wave C up that should take us through the summer before starting the very destructive large wave C down, most likely this fall. That scenario does seem to have merit and is reasonable by my account, although I do not rule out making new lows this summer and will let the tape tell me what’s happening, not the other way around. That said, the tape cannot change my mind on fundamentals as a rising stock market cannot erase our debts despite the folly of the knuckleheaded Keynesian economist who spew forth such drivel as “we should be targeting 6% inflation right now,” which is exactly what Kenneth Rogoff says we should do. What an idiot. That would completely DESTROY the middle class in America.
And then there’s Bill Gross who first advocates the government buying up all his toxic debt from him saying it was the right thing to do, and now he warns that the U.S.’s triple A credit rating is in jeopardy! WHAT AN ASSHAT! Bill Gross sponsors commercials on CNBC so he is constantly invited back to spew his manipulative opinions to the sheeple, while he simply rapes the taxpayers. He is a traitor to his country and should be treated as such, right along side Hank Paulson.
Oh, and speaking of Paulson, he was the bastard who appointed Liddy to front AIG for the money laundering operation to rob hundreds of billions more from the taxpayers. Liddy is now stepping out, that is my queue that that particular money laundering operation is winding down. It is now being replaced with the GMAC money laundering operation. $7.5 billion more of your money will now go into GMAC which WILL FLOW THROUGH TO THE GMAC CREDITORS WHO HAPPEN TO BE THE SAME BANKS. In this manner they now have a new FRONT through which to take more taxpayer money just before they then sacrifice all the GM workers and their retirements through the bankruptcy process. I am telling you that America needs a revolution to end this insanity and to return to our roots.
By the way, BankUnited was taken by the FDIC last night, the largest bank failure of the year. Its assets were sold to a group of private investors. That one will only set the FDIC back about $10.7 billion in money they do not possess and which you and I will pay for either by borrowing more to finance it, or by printing more and losing the purchasing power of our money.
The bastards are all stealing us blind. The money laundering operation is EXACTLY what they are doing. The central banks are using failed businesses as an excuse to suck the lifeblood out of our economy. Some day they will pay for their dirty laundry, I hope that day comes soon.