Flip Flop Thursday – Fixed Again?

Posted on the 10 November 2011 by Phil's Stock World @philstockworld

What a ride I am missing this week on my vacation but, on the whole, noting is happening as it looks like we may finish the week about where we begin it, at Dow 12,000.  If so, then we can call it a week of good consolidation above our Must Hold line and be happy.  

More EU nonsense, of course is driving the markets.  David Fry believes that the EU is just stalling,wanting to get the rest of the world, and particularly the U.S., to bail them out. With Bernanke and Geithner in the mix it’s not out of the realm of possibility.

After all, we know the Fed is “owned” by mega-banks (Primary Dealers) and will do their bidding. If these banks have large exposure to euro zone debt they may feel they have to help them out. It would be nice if we could get the rich Arab states to pony-up to help their good customers but they’re just spectators for now.  

Still, we did not break the panic line on the Euro yet ($1.35) but it was tested at 2am, lining up a perfect 3am trade (where the Dollar maxes out into the Asian close) and our futures have been improving ever since (up 1% at 8am). 

Nothing has changed other than the deck chairs on the Titanic or, in this case, the leaders of Greece and Italy and Italy has pledged to pass even harsher austerity measures, which is cheering up the markets (ie. the Banksters) and giving us a bounce this morning – until the next panic sets in.  As I said to Members yesterday, how close to home does this fire have to spread before we begin to take it seriously.  We started with the Arab spring and now France is bordered by crisis on both Southern Fronts and, if France goes, then it’s Germany and the UK and how long can the US pretend that’s not our problem (apparently until 2016, according to every single moron who answered that question in yesterday’s Republican’t debate).

IN PROGRESS