“The mind’s job is to validate what it thinks.” – Byron Katie
Lead actor Bryan Cranston stated in an interview that “the term ‘breaking bad’ is a southern colloquialism and it means when someone who has taken a turn off the path of the straight and narrow, when they’ve gone wrong. And that could be for that day or for a lifetime.” You’re going about your normal everyday routine, when suddenly something truly awful happens and all that pent-up rage is released with unstoppable fury. Some call it reaching the breaking point; others call it breaking bad.
Tough week, and it may get tougher next week. Trapped longs are waiting for QE11 and bears want death and blood. They want this tape gutted like a dear. It’s their time to shine and this is the first really good sell off for them sine July 2011. The $SPX dropped about 250 points in about three weeks back then. Epic.
Gold $GLD rallied big last week. Was it up in anticipation of imminent global easing or because of an imminent global meltdown? Probably a little of both.
Risk has left the building and the planet earth cant buy a 1.40% treasury return fast enough.
Crude has crashed. Yippee. Problem is if the market crashes people wont be driving. So although everyone wanted less pain at the pump, the irony is that we really want crude to rip higher. Higher oil means we are “doing well” as an economy right? Black is white and white is black. Make it whatever you want. It’s like opposite day.
This is Ben’s time to shine again, but is the chamber empty? With the 10 year at historic lows he doesn’t have much wiggle room. We have a fairly dovish Fed right now and Fischer seems to be the only hawk, but he isn’t a voting member this year.
I love politicos that are leaving their post. They can be honest. Here is what the World Bank head said this weekend.
I guess if we are still finding land mines at $JPM, four years after the crash, the IED’s lurking at the European banks must be epic. It probably only makes sense.
The only person sleeping well this weekend is the guy who’s all cash.
Good luck next week.
$UUP $SPX $QQQ $EURO/USD