Posted by MC on Feb 12, 2010
http://tradersbase.com/tbimages/mc/2010/2-12-2010-spy-daily.jpg
My perspective. Obviously green drawings = bullish and red = bearish. There are many support levels below. The failed break on the head n’ shoulders showed quite bullish sentiment. Bear wise, there is some nice resistance overhead. Both the channel and bigger triangle/spring have broke down. The channel even tested and was rejected at $110ish so that’s a KEY level the bulls will have to fight.
Personally I’d like to see quite a bit of consolidation, which would build even more support up here for the bulls to spring off of. I don’t see how jobless recovery is possible, but I’ll trade what I see and not what I think. 
Fabrication of an economy…
Posted by MC on Feb 10, 2010
As long as they bailout and keep adding to the lenders ability to lend and fabricate an economy things will continue higher and become MORE VOLATILE than ever!
Gains are gains…whether they are from fundamental growth or inflation so I won’t trash long investors profits. But I would say it’s a game of hot potato and he with the highest level of greed will get his hand burned badly.
Depression? Is our economy going to need zoloft?
Posted by MC on Feb 7, 2010
A depression is almost always triggered by the deflation of excess credit. I guess my only question to the US government and banks is this…
HOW MUCH EXCESS CREDIT WILL YOU ENABLE AND FLOOD OUR SYSTEM WITH?
The bigger the bubble the more gum you get stuck to your face when it finally pops. Chew on that.
Americans are heavily burdened by credit that is NOT SELF LIQUIDATING. What does this mean? In basic terms it means that consumers live well beyond their means and take 6+ year car loans out and/or 50 year $0 down ARM mortgages. If you need a lengthy loan term YOU CANNOT AFFORD whatever you’re looking at!!! If you can’t afford 10-20% down on a house to start off with some positive equity in case of a downturn YOU CANNOT AFFORD it.
Self liquidating credit is quick to cycle and close. It’s the only type of credit that adds to the true value of an economy. By cycle I mean…production was facilitated by the creation of the loan…and therefore that loan generated the actual financial/economic return which makes repayment with interest possible. This illustrates TRUE economic growth, fundamentally.
