The Economic Expert – Clarke & Dawe

Million Dollar Quiz

Some of you younglings may never have heard of Monte Python. The following  two+ minute  videos is drop dead funny, but also incredibly educational on economics Aussie comedians Clarke and Dawe’s Million Dollar Quiz

Stocks

  • HUGE 3% rally in decreased, below average volume. = No confirmation of move higher
  • No fundamental news justified rally.
  • McClellan (as predicted yesterday) rose all the way up to -11.98 now in neutral territory.
  • Dollar fell very significant -1.05%

Analysis -Those massive high frequency traders/institutions that probably make up up to 80% of trades took oversold markets higher.

China saying its not going to abandon the Euro was expected news. It would be absolutely dumbfounding and scary  if mere words from China on Europe could move US markets 3%.   This was a technical rally juiced by a rising Euro & falling dollar.

As we have seen in the past technical rallies can continue in decersed, below average volume.  Comedians Clarke and Dawe touch on some of the negative fundamentals, but forget to mention derivates or bets placed on European debt.

Positions

Investors411 sold 1/2 of positions in IMAX, DGIT & VCI – all for about a 5 to 7% profit yesterday.

Long Term Outlook = CAUTIOUSLY BEARISH

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING


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