“Stated another way, even if TARP saved our financial system from driving off a cliff back in 2008, absent meaningful reform, we are still driving on the same winding mountain road, but this time in a faster car” —Neil Barofsky, TARP regulator at large
Maybe oil companies are next because they make too much loot or maybe some of the food companies will get levied because they are putting too many chocolate chips in their cookies. The markets hate regulation of any kind, they especially hate regulation on a sector that we just threw hundreds of billions at to try and save and then months later try and tear down. Counter intuitive at best. It causes confusion, markets hate confusion.
Spain (EWP), Brazil(EWZ), Russia (RSX), China (FXI) are rolling over on the charts. Is this the stage of the market where the charts are rendered useless and momentum just takes over? I see bear flags everywhere and the momentum has certainly been shifted to the bears.
I walked into the weekend mostly flat and I think we’re going lower, but is a big bounce imminent? “Stuff” looks cheap but I think some “stuff” is going way lower. Vague-but honest. One thing I know, the bulls aren’t making the rules anymore.