Just A few comments and an important

  • The US stock market manipulators no longer able to manipulate stocks higher. We’ve moved flat for over two weeks on fears of higher oil prices. Instead they seem to have retreated to entering the market when its oversold (-30 on the MO – see past Investors411 for more info on MO)
  • Both Jim J and JS in the comments section of the blog have commented on  a factor very important to both stocks and the economy.  Bond King” Bill Gross has said US Treasury bonds are “overvalued.” Here the important quote – “The Treasury market typifies perhaps the most overvalued area of the bond market. It becomes a question of musical chairs to a certain extent: who gets out first and who’s the last one looking for a chair on June 30.” - Bill Gross, Pimco
  • What Gross is talking about is the end of quantitative easing, (June 30) where the fed buys US Treasuries from its member banks. Without the Fed buying, who is going to buy those bonds? If the US can’t sell bonds at a low price it means they sell at a higher price = Inflation.

Bottom LineThe training wheels come off the US economic trike on June 30. Stock market bears may be coming out of winter hibernation.  A revolution for freedom, justice and democracy has spread from Morocco to Iraq and just may spread to Asia. A Libyan dictator may commit genocide on his people to stay in power as the world watches or gets involved. (see Popeye & Mama Jama in comments section) Oil Prices are climbing.

Great hope, uncertainty and danger lie ahead.

Time for a pregnant Pause to asses the situation

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